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INTELLECTUAL
PROPERTY (IP) HUB
MASTER PLAN
Developing Singapore as a Global IP Hub in Asia
Published April 2013
© IP STEERING COMMITTEE
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanised, photocopying,
recording or otherwise, without prior permission of the copyright holder.
Cover image courtesy of the Singapore Tourism Board.
1 March 2013
Mr K Shanmugam
Minister for Foreign Affairs and Minister for Law
Intellectual Property (IP) Hub Master Plan
1. On behalf of the IP Steering Committee set up by the Ministry of Law in May 2012, it
is my pleasure to submit our proposed IP Hub Master Plan to guide Singapore’s
development as an IP hub in the next decade.
2. In this knowledge-based, innovation-driven globalised economy, IP has become an
increasingly important driver of business growth. The growth in the IP sector is especially
apparent in Asia, given the marked expansion in IP activities across the entire value chain,
from the creation to the commercialisation and exploitation of IP. There is a window of
opportunity for Singapore to develop itself as a Global IP Hub in Asia – a trusted, neutral
node that services the needs of local and international companies in IP, and supports the
development and growth of the larger IP landscape in Asia.
3. The Committee has proposed three strategic outcomes that Singapore should strive
towards. First, to be a hub for IP transactions and management, so that Singapore can
provide a vibrant IP marketplace to support the regional and international transaction and
management of IP. Second, to be a hub for quality IP filings, by providing a strong value
proposition for IP owners to file their IP in Singapore, so that both local and international
companies will use Singapore as a gateway to obtain IP protection in markets all over the
world. Third, to be a hub for IP dispute resolution, so that companies bring their disputes
here for expeditious and effective resolution through our Courts and alternative dispute
resolution avenues.
4. To achieve these outcomes, the Committee has also identified two enabling
strategies in the form of developing skilled manpower resources networked to the region
and beyond; and offering a conducive and progressive environment for IP activities to
attract various stakeholders, and hence create a hive of IP activities in Singapore.
5. On behalf of the members of the Committee and Sub-Committees, I wish to express
our appreciation to all who have generously contributed time and effort in the formulation
of this IP Hub Master Plan. These include the numerous IP rights holders, practitioners,
industry players and members of the public with whom we had consulted at various points.
6. The rapid evolution of the global IP landscape presents not just challenges but also
opportunities for Singapore. Singapore has always been able to capture value from the
global flows of goods, people and capital. We hope that the Master Plan will better prepare
Singapore to act boldly and decisively to capture the flow of ideas in the next phase of
development of our globalised economy.
Yours sincerely,
TEO MING KIAN
Chairman
IP Steering Committee,
IP Hub Master Plan
1 March 2013
Mr Teo Ming Kian
Chairman
IP Steering Committee,
IP Hub Master Plan
Intellectual Property (IP) Hub Master Plan
1. Thank you for your letter of 1 March 2013 submitting the IP Hub Master Plan.
2. This is an opportune moment for us to undertake a concerted effort to establish
Singapore as a leading centre for IP in Asia.
3. I applaud the Committee for its progressive, comprehensive and well-considered
approach. It is evident that your Committee has taken into account a wide range of
perspectives and has been bold in envisioning the possible avenues for Singapore to expand
its role in the global IP landscape.
4. On behalf of the Government, I would like to thank you and members of the IP
Steering Committee and Sub-Committees, for your efforts in formulating the IP Hub Master
Plan. This will provide a robust framework to guide the continued growth of Singapore’s IP
sector, and cement Singapore’s position as a vibrant Global IP Hub in Asia.
Yours sincerely,
K SHANMUGAM Minister for Foreign Affairs and Minister for Law
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
CHAPTER 1 – INTRODUCTION 9
1.1. SINGAPORE AS AN IP HUB 9
1.2. THE IP STEERING COMMITTEE AND SUB-COMMITTEES 9
1.3. SURVEYING THE IP LANDSCAPE 10
1.4. IP IN SINGAPORE: OPPORTUNITIES AND CHALLENGES 13
CHAPTER 2 – KEY STRATEGIC OUTCOMES AND ENABLERS 16
2.1. VISION OF SINGAPORE AS A GLOBAL IP HUB IN ASIA 16
2.2. STRATEGIC OUTCOME 1: A HUB FOR IP TRANSACTIONS AND MANAGEMENT 17
2.3. STRATEGIC OUTCOME 2: A HUB FOR QUALITY IP FILINGS 18
2.4. STRATEGIC OUTCOME 3: A HUB FOR IP DISPUTE RESOLUTION 19
2.5. ENABLER 1: SKILLED MANPOWER RESOURCES NETWORKED TO THE REGION AND
BEYOND 19
2.6. ENABLER 2: A CONDUCIVE AND PROGRESSIVE ENVIRONMENT FOR IP ACTIVITIES 20
CHAPTER 3 – STRATEGIC OUTCOME 1: A HUB FOR IP TRANSACTIONS AND
MANAGEMENT 21
3.1. DEVELOPING AN IP ECOSYSTEM IN SINGAPORE 21
3.2. MARKETPLACE ELEMENTS 23
3.3. IP FINANCING 27
3.4. IP VALUATION AND OTHER SUPPORT SERVICES 32
3.5. MARKETPLACE TRANSPARENCY 34
CHAPTER 4 – STRATEGIC OUTCOME 2: A HUB FOR QUALITY IP FILINGS 36
4.1. TRENDS IN GLOBAL IP FILINGS 36
4.2. ROBUST AND WORLD-CLASS IP REGIME 37
4.3. INTERNATIONAL COLLABORATION WITH OTHER IP OFFICES 42
4.4. A STRONG AND VIBRANT PATENT AGENT SECTOR 44
CHAPTER 5 – STRATEGIC OUTCOME 3: A HUB FOR IP DISPUTE RESOLUTION 47
5.1. IP DISPUTE RESOLUTION: TRENDS AND OPPORTUNITIES 47
5.2. POSITIONING SINGAPORE AS A CHOICE VENUE IN ASIA FOR IP LITIGATION 48
5.3. PROMOTING THE USE OF ALTERNATIVE DISPUTE RESOLUTION FOR RESOLVING IP
DISPUTES 51
CHAPTER 6 – ENABLER 1: SKILLED MANPOWER RESOURCES NETWORKED TO THE REGION
AND BEYOND 54
6.1. MANPOWER CAPABILITIES: LOOKING AHEAD 54
6.2. IP COMPETENCY FRAMEWORK 55
6.3. POSITIONING THE IP PROFESSION AS A REWARDING CAREER 58
CHAPTER 7 – ENABLER 2: A CONDUCIVE AND PROGRESSIVE ENVIRONMENT FOR IP
ACTIVITIES 60
7.1. A RICH ECOSYSTEM OF IP ACTIVITIES 60
7.2. ATTRACTING IP PORTFOLIOS AND MANAGEMENT FUNCTIONS THROUGH A
COMPETITIVE IP TAX ENVIRONMENT 60
7.3. A PROGRESSIVE IP ENVIRONMENT THAT PROMOTES ADVANCED IP THINKING 62
CHAPTER 8 – CONCLUSION 66
ANNEXES 67
ANNEX A: IP STEERING COMMITTEE MEMBERS 67
ANNEX B: IP SUB-COMMITTEE MEMBERS 69
ANNEX C: TERMS OF REFERENCE 73
1
EXECUTIVE SUMMARY
1. Intellectual Property (IP) is increasingly recognised as a key driver of business
performance and economic growth in the global knowledge-based economy.
Intangible assets, of which IP is a major component, have become a significant
contributor to the value of companies. This has, in turn, fuelled the rapid growth in
demand for IP rights worldwide.
2. Notably, Asia is emerging as a new hotbed for IP activities. Since 2010, East Asia
has overtaken North America and Western Europe in the number of applications
filed under the Patent Cooperation Treaty (PCT), which is used for the filing of
patents in multiple jurisdictions. IP activities in Asia are growing rapidly across the
various components of the IP value chain (viz. IP creation, IP protection, IP
exploitation and IP enforcement), as evidenced by the rise in Gross Domestic
Expenditures on R&D (GERD), IP filings, royalty and licensing fees, and IP disputes.
There have also been increasing cross-border transactions and a greater confluence
of IP activities between the East and the West.
3. These changes are generating opportunities for Singapore to position itself as a
Global IP Hub in Asia – to play a facilitative, bridging role for regional and
international transactions; and to provide a trusted, neutral platform to support
the development and growth of the IP landscape in Asia. Singapore is well-poised
for these opportunities by virtue of its world-class legal and financial infrastructure,
high quality workforce, and strategic geographical location.
Recommendations to Develop Singapore as a Global IP Hub in Asia
4. In May 2012, the Government set up an IP Steering Committee to formulate an IP
Hub Master Plan that will guide Singapore as it seeks to capitalise on this window of
opportunity. The Committee’s recommendations have been formulated with the
overarching aim of looking at both existing and future opportunities and challenges
for Singapore as a Global IP Hub in Asia.
5. The Committee identified three strategic outcomes that Singapore should work
towards: (i) a hub for IP transactions and management; (ii) a hub for quality IP
filings; and (iii) a hub for IP dispute resolution. Two supporting enablers are
necessary for the achievement of these three strategic outcomes, namely: (i) skilled
manpower resources networked to the region and beyond; and (ii) a conducive and
progressive environment for IP activities. The Committee also proposed seven key
strategies for achieving these overarching objectives. The following schematic
provides the strategy map of the IP Hub Master Plan.
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Singapore as a Global IP Hub in Asia: Strategy map
Strategic outcome 1: A hub for IP transactions and management
Strategy 1: Develop a vibrant IP marketplace by attracting top IP intermediaries, and supporting promising initiatives to catalyse the development of the marketplace. Strategy 2: Facilitate IP transactions by increasing access to IP financing, and enhancing transparency and certainty in IP transactions.
Strategic outcome 2: A hub for quality IP filings
Strategic outcome 3: A hub for IP dispute resolution
Strategy 3: Create a strong value proposition to attract IP filings by offering world-class services, and strengthening international collaborations with other IP offices.
Strategy 4: Develop Singapore as a choice venue for IP dispute resolution, through a strong IP Court and deep IP alternative dispute resolution capabilities.
Enabler 1: Skilled manpower resources networked to
the region and beyond
Enabler 2: A conducive and progressive environment
for IP activities
Strategy 5: Build a globally competitive IP workforce that is equipped with specialised IP skill sets and networked to other markets, and support the continued professional development of IP professionals.
Strategy 6: Enhance the tax environment to attract and anchor IP portfolios and substantive management activities. Strategy 7: Nurture a progressive environment that shapes and promotes IP thought leadership, and builds international perception.
Strategic Outcome 1: A Hub for IP Transactions and Management
6. The Committee envisions a vibrant, self-reinforcing and sustainable IP marketplace
ecosystem for Singapore, underpinned by robust marketplace infrastructure and
Global IP
Hub in
Asia
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services, to support the transaction and management of IP in Asia. IP
intermediaries connecting IP buyers/licensees with IP sellers/licensors are pivotal
to IP transactions, and Singapore should attract top, international IP intermediaries
to strengthen the transactional capabilities here. Other key elements would
include marketplace platforms (e.g. IP bulletin boards, auctions, exchanges), and
emergent marketplace functions (e.g. defensive patent aggregators, patent pools,
patent acquisition syndicates). Given the still nascent and evolving state of the IP
industry, Singapore should adopt an open, supportive approach for a diverse array
of initiatives across the entire marketplace ecosystem. Instead of “picking
winners”, the Government should seed the growth of promising projects by
providing a nurturing environment, even if some do not eventually succeed.
7. There is tremendous potential for the value of IP assets to be unlocked and better
monetised. Various instruments like IP securitisation and IP funds already exist to
leverage IP assets to raise funding, but these will take time to grow. The
Government should support and attract these activities to Singapore where
appropriate. For a start, Singapore should undertake an IP financing scheme where
the Government partially underwrites the value of IP used as collateral, to increase
the ease with which IP-rich companies in Singapore can access capital for growth
and expansion.
8. IP valuation lies at the core of the marketplace and strengthening the quality of IP
valuations will encourage more IP transactions. The Committee recommends
establishing a Centre of Excellence for IP Valuation, to undertake research into IP
valuation methodologies, develop and foster industry-wide best practices, and
deliver training. Industry should also be encouraged to enhance the level of
transparency with regard to information pertaining to their IP transactions.
Strategic Outcome 2: A Hub for Quality IP Filings
9. To develop Singapore into a hub for quality IP filings, the Government should
ensure that our IP regime not only meets international standards, but is also
progressive, world-class and supportive of the needs of IP owners. We need to stay
abreast of international trends and developments, and regularly review our various
IP regimes.
10. IP owners primarily file their IP in markets where there is commercial interest.
Given Singapore’s small domestic market, there is a need to provide companies
with a strong value proposition to file their IP in Singapore. We should build a
strong patent search and examination (S&E) team capable of generating quality
S&E reports in an expeditious and cost-efficient manner to encourage more first
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filings in Singapore. In addition, Singapore should forge stronger cooperation with
other national IP offices, e.g. through Patent Prosecution Highways (PPHs),
especially within Asia. An extensive network of PPHs coupled with strong S&E
capabilities will allow Singapore to grow as a choice venue for quality patent filings,
where applicants can obtain cost-effective and quality S&E reports quickly to
expedite patent prosecution in other national IP offices. This would add to the
appeal of filing first in Singapore, and to use Singapore as a gateway to secure IP
protection in other countries. Singapore’s patent regime already shares similar
features and advantages of the provisional patent application system, including the
ability for applicants to file quickly and at a low cost. We should market our various
IP regimes – for patents, trademarks and designs – more actively.
11. It is also important for Singapore to build a larger core of Singapore-qualified
patent agent professionals who are capable of providing high quality patent
services. Our patent agents should have the expertise and experience in wide and
diverse areas of technologies to cater to the needs of international companies
which have global operations, so as to attract work from the region to Singapore as
well as to serve the growing number of local enterprises with aspirations to
become globally competitive companies. This will further support our ambition to
be a hub for IP filings.
Strategic Outcome 3: A Hub for IP Dispute Resolution
12. Singapore is in good stead to position itself as a choice location for IP dispute
resolution, given its international reputation for quality judgments and efficiency of
its Courts. Singapore should raise international awareness of its IP Court and IP
Judges to attract more IP litigation cases to Singapore. In addition, given the
degree of complexity of IP cases, the efficiency and adjudication function of the IP
Court can be strengthened even further, through the adoption of a specialised IP
docket (or case management system) and more active appointments of assessors
and amicus curiae.
13. Singapore should also promote the use of alternative dispute resolution (ADR)
routes, including arbitration, mediation and expert determination, to resolve IP-
related disputes, particularly contractual and licensing disputes. We should
establish a panel of top, international IP arbitrators in Singapore to enhance the
international profile of Singapore’s IP ADR capabilities and attract more IP-related
ADR cases to Singapore. Greater publicity of Singapore’s IP ADR capabilities should
also be undertaken, in close collaboration with the various ADR institutes in
Singapore such as the World Intellectual Property Organisation Arbitration and
Mediation Centre (WIPO AMC) and Singapore International Arbitration Centre
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(SIAC). Singapore as the venue for ADR should be actively promoted and, where
practicable, included in IP-related contracts.
Enabler 1: Skilled manpower resources networked to the region and beyond
14. Manpower capabilities are a crucial element for knowledge-based industry sectors
like IP. To fuel and sustain the growth of the IP industry, Singapore must be able to
build world-class IP manpower capabilities – experts in strategic, market-relevant
areas, who are knowledgeable about the IP environment and plugged into the
network of Asian markets and beyond. Since the building of critical IP expertise will
take time, Singapore should start investing in IP manpower expertise now, even
ahead of demand.
15. The Committee supports IPOS’ effort in developing the IP Competency Framework
(IPCF), and recommends the continued development and implementation of the
IPCF to map out structured multi-disciplinary pathways for IP professionals. In
particular, emphasis should be placed on highly sought-after, specialised skill sets
that will give Singapore a competitive edge such as that of Patent Agents, IP
Management Directors, IP Strategists, and IP Valuation Analysts. We should also
leverage the IPCF to facilitate broader manpower capability growth across the
region, and open up a range of possibilities for synergistic regional training
collaborations and networks supported from Singapore. In line with this, we should
encourage the setting up of IP offices of other countries in Singapore to strengthen
this network.
Enabler 2: A conducive and progressive environment for IP activities
16. Singapore must offer a conducive environment to encourage companies and
professionals from around the world to bring their IP activities to Singapore. The
congregation of various stakeholders – key decision makers shaping corporate IP
strategies; established IP service providers; eminent IP academics and researchers;
IP investors and creators – will create a thriving community of IP players. They will,
in turn, interact and collaborate in a complementary and synergistic way to create a
hive of IP activities. Such a rich ecosystem will contribute significantly towards
increasing Singapore’s international visibility and reputation as a vibrant IP Hub.
17. Singapore is already one of the top locations in the world for ease of doing
business. We should exploit this to incentivise companies to site their IP portfolios
and management teams in Singapore. The Committee recommends that an “IP
Box” or equivalent tax regime be adopted, even for IP not created in Singapore, so
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as to enhance Singapore’s tax environment for IP management activities. Tax
deductions for IP activities across the value chain are also recommended.
18. Our environment must be one that reflects a progressive, forward looking
approach in the way IP is perceived and managed. IP service providers in Singapore
must be dynamic and innovative in adapting to new business trends to serve the
needs of IP owners. Singapore should seek to be the global nexus for discourse on
IP trends and developments, especially those related to Asia, and how IP regimes,
businesses and services need to evolve. To achieve this, we should establish
flagship international IP and innovation-related conferences with the Singapore
brand name, and host other major global IP conferences. We should also convene
an international advisory panel of eminent IP strategists and thinkers to guide
Singapore’s development as a Global IP Hub in Asia. Lastly, Singapore must
originate its own research to contribute actively to the global body of IP knowledge,
and position itself as an IP thought leader.
Conclusion
19. With the emerging global IP landscape, Singapore is well-placed to leverage its
strengths and provide a unique value proposition as a Global IP Hub in Asia for IP
transactions and management, quality IP filings, and IP dispute resolution. If
Singapore can act swiftly and decisively, we can capitalise on the opportunities in
Asia, and attract valuable IP work that will contribute to our economy and create
high-value employment opportunities in Singapore and for Singaporeans in years to
come.
Summary of Key Recommendations
Recommendation Page
Strategy 1: Develop a vibrant IP marketplace by attracting top IP intermediaries, and supporting promising initiatives to catalyse the development of the marketplace.
1-1 Attract top, international IP intermediaries to facilitate IP transactions through incentive schemes.
23
1-2 Collaborate with industries to establish a one-stop licensing platform that allows users to easily obtain licenses for relevant forms of copyrighted works in Singapore, and grow it over time to potentially support the licensing markets in the region.
25
1-3 Support and co-fund a diverse array of projects across the entire IP marketplace ecosystem.
27
Strategy 2: Facilitate IP transactions by increasing access to IP financing, and enhancing transparency and certainty in IP transactions.
2-1 Introduce an IP financing scheme, where the Government partially 29
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Recommendation Page
underwrites the value of IP used as collateral.
2-2 Support IP securitisation activities in Singapore where appropriate. 31
2-3 Attract IP fund management activities to Singapore, to enhance the slate of IP financing avenues and create spin-off demand on other sectors.
31
2-4 Set up a Centre of Excellence for IP Valuation to promote excellence in the research and practice of valuation so as to support IP transactions.
33
2-5 Work with industry to encourage positive practices that would enhance the transparency of IP transactions.
34
Strategy 3: Create a strong value proposition to attract IP filings by offering world-class services, and strengthening international collaborations with other IP offices.
3-1 Build a search and examination (S&E) team capable of producing quality S&E services expeditiously within publicised target timeframes, which should be equal to or better than that offered by the best in the world, and cost-efficiently.
38
3-2 Build comprehensive international networks and collaborations with other IP offices to develop Singapore as a gateway to other markets.
42
3-3 Grow a larger pool of Singapore-qualified patent agents with the necessary expertise to cater to the needs of international companies and attract more patent work to Singapore.
44
Strategy 4: Develop Singapore as a choice venue for IP dispute resolution, through a strong IP Court and deep IP alternative dispute resolution (ADR) capabilities.
4-1 Enhance the profile and strengthen the capabilities of Singapore’s IP Court to attract more IP litigation to Singapore.
49
4-2 Establish a panel of top international IP arbitrators in Singapore to enhance the international profile of Singapore’s IP ADR capabilities and attract more IP-related ADR cases to Singapore.
52
Strategy 5: Build a globally competitive IP workforce that is equipped with specialised IP skill sets and networked to other markets, and support the continued professional development of IP professionals.
5-1 Develop strategic areas of expertise under the IP Competency Framework (IPCF), with specific focus on, but not limited to, Patent Agents, IP Management Directors, IP Strategists and IP Valuation Analysts, and to serve as a training hub for IP professionals in the region to better create a strong network of IP skills and expertise across jurisdictions.
55
5-2 Seed interest in various IP career paths and develop understanding of IP from an early stage, so as to position the IP profession as a rewarding one.
58
Strategy 6: Enhance the tax environment to attract and anchor IP portfolios and substantive management activities.
6-1 Implement an IP Box or similar tax regime to provide greater transparency and certainty in Singapore’s IP tax regime.
61
Strategy 7: Nurture a progressive environment that shapes and promotes IP thought leadership, and builds international perception.
7-1 Establish flagship IP and innovation-related conferences and host 62
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Recommendation Page
international IP conferences in Singapore, to advance and enrich IP discourse in Asia.
7-2 Convene an international advisory panel to guide the development of Singapore as a Global IP Hub in Asia.
63
7-3 Encourage more Asia-centric, multi-disciplinary IP research in Singapore. 63
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CHAPTER 1
INTRODUCTION
1.1. SINGAPORE AS AN IP HUB
1.1.1. The transformation of the global knowledge-based economy is gaining momentum,
and the world economy will be increasingly driven by knowledge and innovation.
Amid these changes, IP has emerged as a key competitive edge for businesses and
economic growth. The marked proliferation of the forms and uses of knowledge is
an indicator of even greater seismic shifts which will reshape the economic
landscape in years to come. Singapore has always been able to capture the flow of
global tides, be it in terms of goods, people or capital. It has been successful in
building itself as a hub – the largest transhipment port; a key transit airport; a
crucial financial centre. Singapore will need to prepare itself to capture the flow of
ideas in the next key development of the globalised world.
1.1.2. Others have also recognised the importance of IP in the global economy. In recent
years, Hong Kong, Ireland, Malaysia, and Shanghai have unveiled their intention to
develop themselves as centres for IP. Singapore will have to act decisively to
position itself as a Global IP Hub in Asia, and leverage its unique strengths to
distinguish itself from these other efforts.
1.2. THE IP STEERING COMMITTEE AND SUB-COMMITTEES
1.2.1. The IP Steering Committee was set up by the Government in May 2012 to
recommend strategies to develop Singapore as an IP Hub, and was chaired by Mr
Teo Ming Kian, Chairman of MediaCorp Pte Ltd. The Steering Committee was
supported by Sub-Committee 1, which was co-chaired by Mr Magnus Bocker, Chief
Executive Officer of Singapore Exchange and Mr Viktor Cheng, Deputy Chief
Executive of Intellectual Property Office of Singapore (IPOS); and Sub-Committee 2,
which was co-chaired by Dr Stanley Lai, Head of IP Practice, Allen & Gledhill LLP and
Ms Danielle Yeow, Senior State Counsel of the Attorney-General’s Chambers. The
Sub-Committees focused on the areas of developing a vibrant marketplace for IP
transaction and commercialisation; and building world-class IP capabilities and
infrastructure. The IP Steering Committee and Sub-Committees comprised senior
representatives from the private and public sectors, who possess diverse
backgrounds and expertise in IP. The lists of members are attached in Annexes A
and B respectively, with the terms of reference of the Committees in Annex C.
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1.2.2. To assist the formulation of the IP Hub Master Plan, feedback was invited from IP
rights holders, practitioners and the industry, as well as the general public. Study
trips to key IP markets like the US and roundtable discussions were also mounted
to gain insights into the opportunities and challenges for Singapore in the global IP
landscape.
1.3. SURVEYING THE IP LANDSCAPE
Global Trends
1.3.1. With the rise of the global knowledge-based economy, there is a growing
recognition in corporate boardrooms that IP is a strategic asset, and it is crucial for
businesses to systematically create, manage and leverage IP, in order to optimise
its value. According to Ocean Tomo, a well-established IP intermediary, the value
of intangible assets for S&P 500 companies – of which IP is a major component – is
now 80% of the total market value, up from 17% in 1975.1
1.3.2. In the next decade, the IP industry is poised to undergo further growth and
development. The growth in IP activities is not confined to any particular
component of the IP value chain, and is evident across IP creation, IP protection, IP
exploitation and IP enforcement, as demonstrated by the rise in Gross Domestic
Expenditure on R&D (GERD), IP filings, royalty and licensing fees and IP disputes
respectively. Figure 1.1. shows the broad value chain or life cycle of IP.
Figure 1.1.: The IP value chain.
1 Ocean Tomo, 2010. http://www.oceantomo.com/media/newsreleases/intangible_asset_market_value_2010 (accessed Feb 2013).
IP Creation Generating IP through research and development, or focused innovation based on anticipated technology trends or market needs.
IP Protection Securing rights to IP, e.g. through filing with IP offices.
IP Exploitation Deriving commercial gains out of IP, e.g. through licensing.
IP Enforcement Taking actions against infringers of IP, e.g. through litigation.
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1.3.3. Based on current trends, this growth is likely to continue and even accelerate.
Demand for patenting has risen from 800,000 applications worldwide in the early
1980s to 1.8 million in 2009, while trademark applications worldwide have
increased from 1 million per year in the mid-1980s to 3.3 million in 2009.2 With
GERD having almost doubled in real terms from 1993 to 2009 and progressively
rising,3 there will be even greater creation of intellectual capital in years to come.
IP-related transactions are also likely to grow further. In nominal terms,
international royalty and licensing fee receipts outpaced the growth in global GDP,
increasing from US$27 billion in 1990 to US$180 billion in 2009,4 i.e. 5% of world
trade.
1.3.4. IP has become increasingly global in nature. There have been a greater number of
international filings worldwide, with a record number of 182,354 patents filed
through the Patent Cooperation Treaty (PCT) in 2011.2 While IP is still largely
territorial, there are indications of a shift towards greater international
cooperation, for instance, the recent developments in introducing a unitary patent
among EU member states,5 and the growing popularity of Patent Prosecution
Highways (PPHs).6
1.3.5. The globalisation of IP is also evident from the greater confluence of IP activities
from the East and the West. Companies from the US and Europe are seeking a
larger presence in Asia, just as Asian companies are pushing to enter new markets
in the West. Asian companies, notably in China, Korea and Taiwan, have been
reported to be “importing” IP significantly from the US and Europe in the last
several years. They are also doing more to protect their IP in foreign jurisdictions
as they internationalise. IP disputes between the East and the West are becoming
more common too, e.g. Samsung (Korea) vs. Apple (US); Huawei (China) vs. Cisco
(US), as technology powerhouses from Asia start to establish themselves globally.
There is opportunity for Singapore to play a role in these interactions, and help
navigate the differences between the two regions. Additionally, these companies
will require new technology and other IP, as well as quality IP services. This
presents an area of need that Singapore can cater to.
2 WIPO, 2012. 2012 World Intellectual Property Indicators. http://www.wipo.int/ipstats/en/wipi/index.html
(accessed Feb 2013). 3 WIPO, 2012. The Changing Face of Innovation. http://www.wipo.int/wipo_magazine/en/2012/01/article_0006.html (accessed Feb 2013). 4 The World Bank. http://data.worldbank.org/indicator/all (accessed Feb 2013). 5 The unitary patent system will allow for the grant of a single European patent that will provide the owner with patent rights across all participating member states. 6 A PPH enables the sharing of search and examination results between partner IP offices so as to accelerate the grant of a patent application in either of the partner IP offices.
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1.3.6. Within Asia, IP is a rapidly growing sector. Growth in innovation and IP creation has
been accompanied by a heightened interest to capitalise on it in both local and
international markets. Significantly, East Asia has overtaken North America and
Western Europe in PCT patent applications since 2010,7 and patent filings from
China accounted for 72% of total growth in applications worldwide from 2009 to
2011 (Figure 1.2.).2 In ASEAN, there are fast-growing, emerging markets for IP
(Indonesia; Malaysia; Philippines; Thailand; Vietnam) on the back of continued R&D
investment.
Figure 1.2.: Contribution of offices to growth in patent applications worldwide.2
1.3.7. The Committee notes that internationally, IP-based marketplaces are emerging as a
means to better extract value from IP assets. These include a range of IP
marketplaces, such as IP bulletin boards, auctions, and exchanges. IP-based
marketplaces are gaining momentum, not just in the established IP markets of the
US and Europe, but also in emerging Asian markets like China. IP marketplaces,
while nascent, will undoubtedly play increasingly important roles in cross-border IP
trade. Singapore should ride on its successes in other industries and consolidate its
position as a provider of such marketplaces for international IP transactions,
especially those involving the Asian markets.
Growth of Singapore’s IP Landscape
1.3.8. There have been significant developments in Singapore’s IP landscape in recent
years. The number of IP filings in Singapore has grown significantly. From 2001 to
2011, patent filings have increased by 20% to almost 10,000, and trademark filings
7 WIPO, 2011. WIPO Assemblies 2011: Report of the Director General. http://www.wipo.int/about-wipo/en/dgo/pdf/dg_report_a49.pdf (accessed Feb 2013).
13
have increased by 72% to nearly 35,0008 (Figure 1.3.). In the same period,
Singapore’s royalty and licensing fee receipts and payments have also risen.4
Figure 1.3.: Singapore patent and trademark filings (Source: IPOS).
1.3.9. Local needs for IP support services and infrastructure have increased, given the
greater number of MNCs’ headquarters, R&D centres, and IP management
functions in Singapore. Furthermore, Singapore aims to increase its GERD from
2.3% of GDP in 2009 to 3.5% of GDP by 2015.9 Taken together, there is tremendous
potential for future growth in the areas of IP and IP support services.
1.4. IP IN SINGAPORE: OPPORTUNITIES AND CHALLENGES
IP: An Area of Promise
1.4.1. The Committee is of the view that the IP industry holds great promise for Singapore
if timely efforts are undertaken to capitalise on emerging opportunities. Doing so
will generate high-value jobs for Singaporeans and contribute to our economic
growth.
1.4.2. In positioning itself as an IP Hub, Singapore is starting from a position of strength.
Singapore’s IP legislative and enforcement frameworks, undergirded by a strong
rule of law, have been considerably strengthened to support the protection,
management and exploitation of IP. This is evidenced by Singapore’s performance
in international rankings in 2012. Singapore has been ranked 2nd and 7th in IP
protection / enforcement by the World Economic Forum (WEF)10 and the
8 IPOS, 2012. http://www.ipos.gov.sg/AboutIP/IPResources/Statistics.aspx (accessed Feb 2013).
9 MTI, 2011. Research, Innovation and Enterprise (RIE) 2015. http://www.mti.gov.sg/ResearchRoom/Pages/Research,-Innovation-and-Enterprise-(RIE)-2015.aspx (accessed Feb 2013). 10 WEF, 2012. Global Competitiveness Report 2012-2013. http://www.weforum.org/reports/global-competitiveness-report-2012-2013 (accessed Feb 2013).
Overall CAGR: 4.0%
Asia CAGR: 4.8%
Overall CAGR: 4.0%
Asia CAGR: 4.8%
14
International Institute for Management Development (IMD)11 respectively. We are
further supported by a well-developed financial service industry and highly skilled
workforce.
1.4.3. Together with Singapore’s high level of global connectedness and the
cosmopolitan, vibrant lifestyle it has to offer, there are strong reasons for IP rights
owners, service providers and investors to set up an Asian base in Singapore.
Singapore’s unique value proposition in terms of its attributes is summarised in
Figure 1.4. below.
Figure 1.4.: Singapore’s attributes.
Surmounting the Challenges Ahead
1.4.4. Nonetheless, the Committee is cognisant that Singapore’s development as an IP
Hub faces a number of challenges. First, Singapore has a relatively small domestic
11 IMD, 2012. World Competitiveness Yearbook. http://www.imd.org/research/publications/wcy/index.cfm (accessed Feb 2013).
• Cosmopolitan, vibrant city living.
• Presence of MNCs and headquarters.
• Extensive network of international agreements and FTAs.
• Positioned between the East and West.
• Highly educated, multi-cultural workforce.
• Large base of specialists from around the world.
• Strong legal and financial infrastructure.
• Rich R&D ecosystem.
• Competitive tax rates and laws.
• Ease of doing business.
TRUST KNOWLEDGE
LIFE CONNECTED-
NESS
15
market, which limits the demand for IP transactions, filings, and dispute resolution
services. For it to gain critical mass and standing in the area of IP, it has to look
outwards to tap on international markets and expertise. Second, IP transactions
are costly due to difficulties in valuation and the limited transparency in the
market. Third, there are still gaps in the slate of capabilities required to service the
needs of the local and the region’s IP ecosystem.
1.4.5. In its formulation of strategies to achieve the desired outcomes of Singapore as an
IP Hub, the Committee has considered these constraints and sought to propose
recommendations which would help address and overcome them. The overarching
strategy is to identify niche areas in the global IP landscape that Singapore can
contribute meaningfully to, and exploit Singapore’s advantages to forge a strong
value proposition, hence allowing us to punch above our weight and distinguish
ourselves as a pre-eminent Global IP Hub in Asia.
16
CHAPTER 2
KEY STRATEGIC OUTCOMES AND ENABLERS
2.1. VISION OF SINGAPORE AS A GLOBAL IP HUB IN ASIA
2.1.1. The Committee has identified three strategic outcomes and two key enablers to
develop Singapore as a Global IP Hub in Asia in the next decade (Figure 2.1.).
Strategic outcomes
A hub for IP transactions and management
A hub for quality IP filings A hub for IP dispute
resolution
Enablers
Skilled manpower resources networked to the region and beyond
A conducive and progressive environment for IP activities
Figure 2.1.: Key strategic outcomes and enablers.
2.1.2. The goal is to build a vibrant, sustainable IP ecosystem with a host of IP activities in
Singapore, thereby creating high value-add jobs across sectors that will contribute
to the economy. The average value-add of a worker in the IP industry is estimated
to be S$175,000 in 2011,12 almost double the national average of S$89,800. The IP
industry comprises companies managing their IP portfolios, as well as firms
providing services associated with IP protection, IP exploitation and IP
enforcement, including IP intelligence / search, patent drafting, patent / trademark
/ design prosecution, franchising / licensing, IP brokerage, IP valuation, IP litigation,
and IP training.
2.1.3. By attracting more global players to Singapore and extending our reach to the
regional markets, there is potential for Singapore to at least double the size of the
IP industry, in terms of both the employment and the total value-add, which are
currently estimated to contribute to 0.24% of Singapore’s GDP. Besides meeting
regional demands, a more sophisticated and comprehensive IP industry will also
help our Singapore-based MNCs, SMEs, research institutes and institutes of higher
learning to maximise returns on their R&D investments.
2.1.4. To facilitate the achievement of these goals, the Committee has also identified
possible outcome indicators for each of the three strategic outcomes to measure
Singapore’s success as a Global IP Hub in Asia (Figure 2.2.).
12 IPOS’ estimates based on respondents of IPOS’ IP Services Survey 2011.
17
Figure 2.2.: Possible outcome indicators.
2.2. STRATEGIC OUTCOME 1: A HUB FOR IP TRANSACTIONS AND MANAGEMENT
2.2.1. Singapore should attract IP rights holders to manage, license and transact their IP
from here. Each of these activities will generate strong spin-offs to the IP services
industry.
2.2.2. Most IP transactions, especially the sale of IP, are confidential and the information
is often not captured in any published statistics. A suitable proxy indicator to
measure the level of IP transaction and management would be the royalty and
licensing fees, as tracked by the World Bank, between residents and non-residents
for the authorised use of intangible assets, including patents, copyrights,
trademarks, franchises and know-how. As the transactional profile of certain major
IP owners have shown, there would typically be revenue generated from the
transaction of IP alongside the out-licensing of the IP in the active management and
monetisation of IP portfolios.
2.2.3. According to the World Bank, Singapore received US$1.9 billion in royalty and
licensing fees (5% of Asian receipts) in 2010, making it the 3rd largest out-licensing
market in Asia after Japan and Korea; it was the 2nd largest in-licensing market in
Asia after Japan, having paid US$15.9 billion in royalty and licensing fees (23% of
18
Asian payments).4,13 In other words, Singapore’s licensing “trade flows” totalled
nearly US$18 billion. With Japan expected to remain the key licensor / licensee of
IP rights, and the rest of Asian countries, especially China, catching up rapidly,
Singapore must entrench its position as a preferred location to manage and
transact, and invest in IP in Asia. By supporting the East-West and intra-Asia IP
transactions and facilitating IP-related financing, Singapore can grow its share of
Asian receipts and payments from the current 5% and 23% respectively,4 and
remain within the top three IP licensing markets within Asia.
2.3. STRATEGIC OUTCOME 2: A HUB FOR QUALITY IP FILINGS
2.3.1. While patent filings are on the rise, the Organisation for Economic Cooperation and
Development (OECD) has observed that the quality of patent filings has actually
fallen over the last two decades,14 as some countries rush to protect minor
improvements in products or services. Therefore, even as we seek to attract more
patents that are filed in Asia and key global markets to be also filed in Singapore,
we must ensure that patents granted in Singapore are associated with a mark of
quality to differentiate ourselves from other IP offices.
2.3.2. Although patents are usually filed in the markets of commercial interest, they may
also be filed with IP offices that offer other strategic advantages such as cost-
effective, efficient and quality search and examination (S&E) which validate the
strength of the patents, or the availability of PPHs which shorten the time to patent
grant in key markets. Hence, our success as a hub for quality IP filings could be
measured by both the number of total IP (patent / trademark / registered design)
filings, and the number of first filings (i.e. the first patent application of a new
invention) in Singapore.
2.3.3. WIPO statistics show that around 9,800 patent applications were filed in Singapore
in 2010; in the same year, Singapore was the first office of filing for approximately
500 patent applications.15 This makes Singapore the 5th (after China, Japan, Korea
and Hong Kong) and 6th (after China, Japan, Korea, India and Turkey) most popular
IP office in Asia in terms of total and first patent filings respectively. The IP offices
of China, Japan and Korea (part of the “IP Five” Offices, beside the US Patent and
13 While Singapore pays more royalty and licensing fees than it receives, it also suggests that our companies are creating value-add, and generating revenue from the IP they license in. 14 OECD, 2011. OECD Science, Technology and Industry Scoreboard 2011: Innovation and Growth in Knowledge Economies. http://www.oecd.org/sti/oecdsciencetechnologyandindustryscoreboard2011innovationandgrowthinknowledgeeconomies.htm (accessed Feb 2013). 15 WIPO IP Statistics Data Center, 2012. http://ipstatsdb.wipo.org/ipstats/patentsSearch (accessed Feb 2013).
19
Trade Mark Office (USPTO) and the European Patent Office (EPO)) accounted for
almost 95% or more of the total filings and of first filings in Asia, and are expected
to continue their dominance in the next decade. Nevertheless, there is certainly
room for Singapore to increase its market share, so as to create more demand for
the IP services sector in Singapore. Singapore should aim to raise its relative
attractiveness and be one of the choice destinations within Asia for the filing of
patents, and other registrable IP rights like trademarks and designs.
2.3.4. Being a gateway for IP filings in other markets can also be achieved through
commercial IP services. Indeed, Singapore-based IP service providers are already
undertaking considerable work, helping foreign companies co-ordinate their IP
filings, develop IP strategies, and other related work in regional markets. We
should aim to grow such offshore work as an IP Hub.
2.4. STRATEGIC OUTCOME 3: A HUB FOR IP DISPUTE RESOLUTION
2.4.1. Singapore should position itself as a preferred location for IP dispute resolution.
Our strong rule of law and highly regarded Courts are strengths that will help
attract global IP disputes to be settled here. The IP Court received 40 cases in
2011,16 while the Singapore International Arbitration Centre (SIAC) handles only a
few IP-related cases today. There is potential to increase this as Singapore plays
host to more IP activities, and as more disputes arise in Asia following greater
cross-border collaborations and require trusted, efficient avenues for their
resolution.
2.4.2. Overall, Singapore should strive to be the most preferred seat for IP dispute
resolution in Asia.
2.5. ENABLER 1: SKILLED MANPOWER RESOURCES NETWORKED TO THE REGION AND
BEYOND
2.5.1. As with any other industry, the growth of Singapore as a Global IP Hub in Asia must
be supported by a deep pool of world-class skilled manpower plugged into the
network of Asian markets and beyond. Singapore must seek to nurture the
development of IP manpower in Singapore by attracting the right talent from
within and overseas, and ensuring the quality of training with emphasis on
continued professional development for IP professionals.
16 This includes patent, trademark and copyright infringement actions, and counterclaims for revocation of patents. There may also be IP disputes in broader commercial cases that are heard at other Courts.
20
2.6. ENABLER 2: A CONDUCIVE AND PROGRESSIVE ENVIRONMENT FOR IP ACTIVITIES
2.6.1. An environment that is conducive for IP-related activities is also critical to the
sustainable development of Singapore as a Global IP Hub in Asia. Singapore must
create a rich, vibrant and innovative ecosystem of IP activities and IP stakeholders
that is teeming with buzz and excitement. We should support companies managing
their IP and servicing the Asian markets from Singapore. Our environment should
be a progressive one that promotes discourse and forward thinking, and
encourages innovative ideas that keep pace with and signposts international IP
developments. Most importantly, the environment should enhance Singapore’s
visibility and mindshare as an IP Hub amongst the international community and in
particular Asia.
2.6.2. Chapters 3 to 7 set out the Committee’s specific recommendations to achieve the
three strategic outcomes, supported by the two enablers, to develop Singapore as
a Global IP Hub in Asia in the next decade.
21
CHAPTER 3
STRATEGIC OUTCOME 1: A HUB FOR IP TRANSACTIONS AND
MANAGEMENT
Strategy 1: Develop a vibrant IP marketplace by attracting top IP intermediaries, and
supporting promising initiatives to catalyse the development of the marketplace.
1. Attract top, international IP intermediaries to facilitate IP transactions through
incentive schemes.
2. Collaborate with industries to establish a one-stop licensing platform that allows users
to easily obtain licenses for relevant forms of copyrighted works in Singapore, and grow
it over time to potentially support the licensing markets in the region.
3. Support and co-fund a diverse array of projects across the entire IP marketplace
ecosystem.
Strategy 2: Facilitate IP transactions by increasing access to IP financing, and enhancing
transparency and certainty in IP transactions.
1. Introduce an IP financing scheme, where the Government partially underwrites the
value of IP used as collateral.
2. Support IP securitisation activities in Singapore where appropriate.
3. Attract IP fund management activities to Singapore, to enhance the slate of IP financing
avenues and create spin-off demand on other sectors.
4. Set up a Centre of Excellence for IP Valuation to promote excellence in the research and
practice of valuation so as to support IP transactions.
5. Work with industry to encourage positive practices that would enhance the
transparency of IP transactions.
3.1. DEVELOPING AN IP ECOSYSTEM IN SINGAPORE
3.1.1. The first strategic outcome is to position Singapore as a hub for IP transactions and
management – a regional and global nexus for the trading, licensing and
monetisation of IP. With the marked shift in the value of companies towards
intangibles, there has been a corresponding shift towards deriving maximum
returns from IP assets.
3.1.2. Amid these changes, Singapore is starting from a position of strength, as it already
contributes a substantial share towards international IP trade flows. Based on
World Bank data, Singapore is ranked 2nd in Asia (4th worldwide) for the amount of
royalty and licensing fees paid, and 3rd in Asia (14th worldwide) for the amount
received in 2010.
22
3.1.3. There is potential for Singapore to play an even larger role to facilitate the
international, particularly Asian, IP trade flows. Beyond our strong legal
infrastructure and capital market, our greatest value proposition as a hub for IP
transactions and management is our reputation for being a trusted, neutral and
secure location for doing business. This was roundly affirmed by international IP
owners and intermediaries during the Committee’s engagement with industry.
3.1.4. The Committee is of the view that Singapore’s IP marketplace would need to be
accompanied by robust supporting marketplace infrastructure and services. It
should ultimately be a self-reinforcing ecosystem, to not only ensure long term
sustainability, but also generate multiplier effects within the complementary IP
sectors. This is depicted in Figure 3.1.
Figure 3.1.: The IP marketplace ecosystem.
3.1.5. The marketplace functions can be broadly categorised into the following groups,
which are discussed subsequently.
23
A. Marketplace elements, including:
Middlemen or brokers
Marketplace platforms
Emergent marketplace functions
Section 3.2.
B. IP financing options, including:
IP-backed loans
IP securitisation
IP funds
Section 3.3.
C. IP valuation and other supporting services Section 3.4.
3.2. MARKETPLACE ELEMENTS
A. Middlemen or Brokers
3.2.1. IP intermediaries are crucial to any marketplace, performing the integral function
of a middleman to connect IP rights holders with potential buyers of IP, and
enabling the brokering, including the sale, licensing or acquisition, of IP. Their
involvement is critical, since IP transactions are often strategic corporate activities
where buyers (and potentially sellers) would require anonymity to safeguard the
confidentiality of corporate strategies. Thus, brokers are essential to front and
structure the transaction and licensing deals, provide specialised ancillary services,
and use their networks and know-how to match buyers and sellers in an
increasingly complex technology and IP landscape. Given that a great volume of
transactions is cross-border in nature, a global network of middlemen would be
even more important.
Recommendation 1-1
Attract top, international IP intermediaries to facilitate IP transactions through
incentive schemes.
3.2.2. The Committee is of the view that IP intermediaries are required to “gel” the
marketplace together, since IP intermediaries would have an intrinsic incentive to
stimulate and seek out IP transactions. IP owners also engage their services for the
strategic management of IP portfolios. Through incentive schemes that are
customised to the different IP intermediary models, Singapore should aim to bring
in the top, international IP intermediaries, particularly firms that would inject new
and specialised capabilities into the local IP ecosystem. This is opportune since
these firms would also require an Asian base to service and grow their clientele.
We can also consider ways in which the intermediaries in Singapore can be better
organised. For example, the industry could develop a transactional rulebook, to
promote consistency and best practices and encourage more IP transactions to
24
take place. The availability of marketplace platforms and financing, as discussed
later, will further add to our appeal as an IP marketplace.
B. Marketplace Platforms
3.2.3. Marketplace platforms can be used to increase the transparency, quality and
efficiency of different types of IP transactions, be it in terms of IP assets themselves
or licenses. Three common types of marketplace platforms are IP bulletin boards,
IP auctions, and IP exchanges, with each experiencing varying degrees of success.
IP bulletin board
3.2.4. An IP bulletin board is a central listing directory for the licensing, buying and selling
of IP. Users of the bulletin board will have access to portfolio and transaction-
related information. The level of information disclosure can be controlled by a
membership or listing fee to maintain the level of confidentiality necessary in the IP
transactions. As observed in a study by the European Commission in 2012,
successful platforms would need to significantly reduce the screening cost by
providing potential buyers with additional information about related know-how
and commercial potential of the technology.17 Such platforms would also need to
provide value-added services to reduce transactional cost.
IP auction
3.2.5. An IP auction is a platform where buyers bid for IP assets. Auctions usually take the
form of live auctions for patents.18 While some international commentators feel
that IP auctions are slowly losing popularity, there are still advantages to be gained.
For example, IP auctions provide price transparency for IP assets through the
publicly-available data on IP transaction values. Such a data set of comparable
transactions will aid in the pricing and valuation of IP in the same technology field.
The publicity and buzz generated by live auctions can also help sellers reach out to
more buyers. In line with Singapore’s IP Hub objectives, Singapore could
potentially host auctions of US or European patents for Asian buyers, and vice
versa. The key for a successful auction would be to ensure that only top-tier IP
assets are featured.
17 European Union, 2012. Options for an EU Instrument for Patent Valorisation. http://ec.europa.eu/enterprise/policies/innovation/files/options-eu-instrument-patent-valorisation_en.pdf, (accessed Feb 2013). 18 The most prominent of examples would be the Nortel auction, which resulted in the Apple/Microsoft-led consortium paying US$4.5 billion for 6,000 patents.
25
IP exchange
3.2.6. An IP exchange is a trading platform where IP-based instruments are listed and
traded with publicly available information pertaining to the trading volume and
pricing. This is still a relatively “greenfield” area, and there are various forms of
exchanges worldwide at different stages of development. One example in the US
aims to list and trade “standardised licenses” of patents to facilitate efficient mass
licensing. New market models that attempt to trade other IP-based financial
products are also emerging, thereby allowing IP owners to monetise their IP assets.
Digital copyright licensing exchange
3.2.7. Among the various possible forms of IP rights trading, the area of copyright
licensing warrants special attention due to the transformational changes brought
about by the digital age. In line with changing consumer needs, there has been a
proliferation of new forms of digital services across different types of copyrighted
content, and the rise of digital forms of content has been accompanied by the
increase in ease with which content can be disseminated across borders. As a
result, existing models of global royalty collection are being challenged to keep
pace, while global service providers grapple with a complex web of fragmented
copyrights which are territorial and residing with various different rights holders.
3.2.8. Digital copyright licensing is clearly an area that will require strong international
cooperation to address new business needs and be made more efficient. Some
international efforts are already underway to address these challenges, notably the
International Music Registry facilitated by WIPO, the Global Repertoire Database
set up by the EU for licensing music, and the Digital Copyright Exchange in the UK
for licensing copyrighted works (e.g. music, images, publishing, and audiovisual
clips). All of these initiatives are underpinned by similar objectives of facilitating
and streamlining the licensing process in the digital environment.
3.2.9. The Committee has also received feedback that Singapore’s music copyright
licensing industry could be better organised to facilitate the entry of new digital
content service providers, and to allow local businesses to obtain licenses to use
copyrighted works more easily.
Recommendation 1-2
Collaborate with industries to establish a one-stop licensing platform that allows
users to easily obtain licenses for relevant forms of copyrighted works in Singapore,
and grow it over time to potentially support the licensing markets in the region.
26
3.2.10. A digital copyright licensing platform in Singapore will enable users to access a
unified database of information on specific forms of copyrighted works and obtain
licenses more easily and efficiently. Given that Singapore hosts the regional
headquarters of several copyright owners such as international record labels, we
can even potentially grow the platform to help support the licensing markets in the
region, in co-ordination with the larger international efforts. Singapore can play
this role well with our strong IT infrastructure and services, and our reputation for
stability, neutrality and efficiency. The Committee notes that such initiatives would
ultimately hinge on the ability of the industry to organise itself in a concerted
fashion to improve Singapore’s copyright licensing system.
C. Emergent Marketplace Functions
3.2.11. A progressive IP marketplace should also comprise new marketplace functions such
as defensive patent aggregators, patent pools and patent acquisition syndicates.
Defensive patent aggregators acquire key patent portfolios for particular sectors,
and grant licenses to their clients – usually operating companies – to provide a
protective measure against unwanted patent infringement claims and litigation.
Patent pools also present a progressive and desirable function in the IP
marketplace, since they bundle essential patents for third party manufacturers to
access specific technologies (e.g. industry standards like radio-frequency
identification (RFID); Moving Picture Experts Group (MPEG)). Patent acquisition
syndicates band together interested operating companies to purchase patents on
an ad-hoc basis to neutralise patent infringement risks. In today’s technology
environment where products increasingly draw upon a multitude of innovation
sources globally, a single source of patent portfolios will likely gain favour.
Singapore should support and develop these emergent functions, to create a
diverse and sophisticated IP marketplace that caters to the unique needs of its
stakeholders.
Overall Approach to Develop the IP Marketplace
3.2.12. IP marketplaces worldwide are constantly evolving at a fast pace in their form,
function and stakeholders served; each of the marketplace entities would suit the
needs of different buyers and sellers. The Committee feels that it is not clear at
this moment which would eventually emerge as the dominant form. In fact, like
any other marketplace, there would need to be a wide variety of market
mechanisms for it to truly flourish. Singapore as an IP Hub therefore need not seek
to “pick winners” at this early stage, but should instead find ways to support a
diverse range of such marketplace avenues and allow the marketplace to develop
27
and evolve naturally. The Committee noted that this view was also held in a study
commissioned by the European Commission.17
Recommendation 1-3
Support and co-fund a diverse array of projects across the entire IP marketplace
ecosystem.
3.2.13. The Government should support ground-up proposals of IP marketplace players
that create infrastructure to facilitate marketplace transactions, by providing co-
funding where appropriate. If we can seed growth in promising areas in a timely
fashion, Singapore’s IP marketplace ecosystem can grow and remain progressive
and relevant. In particular, priority should be given to meritorious proposals that
bring strong value-add to the IP marketplace ecosystem and generate spin-off
demand on other parts of the IP industry.
3.3. IP FINANCING
3.3.1. The availability of financing is a key ingredient of any marketplace. It allows
companies with IP to raise capital to fund further growth and expansion, or to
acquire IP and licenses to strengthen products and improve services.
3.3.2. As with the Ocean Tomo study on S&P 500 companies, a 2010 analysis of 37,000
companies in the top 53 stock markets by Brand Finance, a global intangible asset
valuation consultancy firm, concluded that a significant portion of global enterprise
value – 40% – intangible; in Singapore, this percentage is 50%.19 There is clearly
much latent value in IP assets that can be unlocked.
3.3.3. IP financing can be broadly classified as follows:
IP-backed loans – loans that are partially or wholly secured by the
company’s IP assets as collateral;
IP securitisation – upfront lump-sum payment in exchange for future
royalty streams from the company’s IP assets;
IP funds – funds that invest in IP in a strategic manner, e.g. acquiring IP for
licensing, investing in the development or commercialisation of IP, taking
equity stakes in companies which own IP.
19 Brand Finance, 2010. Singapore Top 100 Annual Report. http://www.brandfinance.com/images/upload/sg_top_100_report_2010.pdf (accessed Feb 2013).
28
3.3.4. Although IP financing is a more developed industry compared to a decade ago, it is
still not widely accepted by financial institutions and investors today. This can be
attributed to a number of factors, including:
Lack of understanding and familiarity with IP as an asset class;
Concern with the availability of marketplace avenues to liquidate IP assets;
Lack of confidence in the valuation of IP assets;
Concern with the volatility of IP asset values, in particular patents, due to
potential disruptive technologies and changes in applicable laws with regard
to patent damages;
Concern with the need for enforcement and litigation to preserve the value
of IP assets.
3.3.5. Despite these issues, IP financing appears to be a viable option to diversify the
funding sources for companies. Some IP commentators find IP to be less correlated
with the broader financial market than traditional asset classes like real estate and
commodities, and thus help to diversify investment risks. There is potential for
Singapore to develop itself into a hub where companies rich in IP can come to raise
capital, and where investors can make investments in IP. A well-developed and
sophisticated IP financing sector that recognises the value of IP can attract more
transactions to Singapore, and catalyse the demand for other IP support services.
Singapore has a conducive environment to achieve this due to its strong financial
services and wealth management sectors, and its strong regulations that provide
confidence to IP holders and investors alike.
3.3.6. There should be a range of IP financing options – from financial institutions such as
banks, IP intermediaries, as well as venture capital firms, in order to enable the
financing of IP across the spectrum from early stage to mature IP (Figure 3.2.). As a
general principle, the Committee is of the view that financing of early stage IP
should primarily be left to venture capital and private equity investors due to the
higher risk profile at this stage of IP development. In the same vein, professional
markets (i.e. an equity trading platform for professional investors) could act as the
bridge to connect IP-centric companies with equity capital. There is potential to
leverage existing / future professional markets which cater to all types of
companies, and carve out a niche for IP-centric companies to raise funds there.
This is a good fit because a certain level of investor sophistication is required to
assess the risks and potential of IP as an investment asset. The banks, on the other
29
hand, should be more actively involved for the more mature and proven IP, where
the risks are more defined and can be better managed.
Early stage IP Mature IP
Venture Capital / Private Equity
IP Loans (By Banks)
Securitisation, Bonds
Professional Markets
IP Funds
Figure 3.2.: Financing approaches for different stages of IP.
A. IP-Backed Loans
3.3.7. Several countries have implemented or will be implementing IP-backed loan
programmes to help their domestic SMEs obtain financing using their IP as
collateral, including Japan, Thailand, China, and more recently, Malaysia.
3.3.8. In Singapore, local banks are generally more conservative, and have concerns
accepting IP assets as collateral. Consequently, our IP-rich but asset-light
companies, especially those in the R&D and technology sectors, often experience
difficulties in obtaining loans from local banks or other financial institutions to
finance growth and expansion. A 2010 study conducted by INSEAD found that the
limited availability of growth capital and restrictive bank lending is one of the
barriers for the growth of high-tech SMEs in Singapore.20 MNCs, on the other hand,
are typically already able to raise capital through their existing credit facilities.
3.3.9. IP-backed loans will enable Singapore-based companies that are rich in IP to reach
the next stage of development and compete in international markets. This will also
help attract regional high-tech or IP companies to relocate their IP and related
operations to Singapore to access capital.
Recommendation 2-1
Introduce an IP financing scheme, where the Government partially underwrites the
value of IP used as collateral.
20 INSEAD, 2010. High tech SME gap in Singapore. http://www.insead.edu/facultyresearch/centres/global_private_equity_initiative/students/documents/HighTechSMEinSgp_Oct2010.pdf (accessed Feb 2013).
30
3.3.10. The Committee recommends that the Government introduce an IP financing
scheme to encourage investors and financial institutions to venture into this area.
For instance, there could be a pilot scheme for IP-backed loans, where the value of
the IP assets of the borrower would be partially underwritten by the Government
to encourage banks to accept them as collateral in support of the loan. It would be
important for the banks to be left to undertake their own due processes in
assessing the credit worthiness of the applicants and the business case of the
applicants. IP collateral should be treated like any other asset that may help,
instead of drive, the loan application. The Strategic Risk Initiative (SRI) introduced
during the 2009 global financial crisis to support bank lending could provide some
lessons to follow.
3.3.11. Overall, such a scheme for IP-backed loans will also start to build IP financing
capabilities among the local financial sector to manage IP as an asset class, to
enable more sophisticated forms of IP financing to take place in future.
B. IP Securitisation
3.3.12. IP securitisation is a structured finance tool that would help to widen and diversify
the slate of IP financing offerings in Singapore. IP securitisation involves the
transfer of IP assets to a bankruptcy-remote special purpose vehicle (SPV). IP
assets which are generating steady revenue streams through licensing are
particularly good candidates for securitisation. The benefits of SPV include the
isolation of credit risk, and credit arbitrage opportunities where IP companies could
achieve better credit ratings, leading to a possibly lower cost of borrowing as
compared to traditional loans. As IP becomes an increasing source of asset value in
companies, there is potential for IP securitisation to gain greater traction in
financial markets.
3.3.13. Past examples of IP securitisation deals include:
Patent securitisation, where DRI Capital structured a patent securitisation
for US$195 million in 2012, which is backed by the cash flow of 18 royalty
streams from a pool of 14 drugs21;
21
Reuters, 2012. Bonds backed by drug-royalty cashflows make a return. http://www.reuters.com/article/2012/03/05/drug-royalties-abs-idUSL2E8E58LS20120305 (accessed Dec 2012).
31
Trademark securitisation, where Sears Holding, an American retailer, issued
US$1.8 billion worth of bonds in 2007 by securitising the three brand
names22; and
Copyright securitisation, where Miramax Films, an American entertainment
company, completed a US$550 million securitisation deal in 2011 backed by
licensing and distribution royalty streams of a library of more than 700
films23.
3.3.14. The market for IP securitisation is still nascent in Asia. Even in the US, IP
securitisation is estimated to constitute only a small percentage of the total asset-
backed securitisation market. The view in the US is that it remains a useful option
to diversify the funding sources, though the nature of IP securitisation is very niche
and specialised and would not benefit all companies.
Recommendation 2-2
Support IP securitisation activities in Singapore where appropriate.
3.3.15. The Committee observes that among other reasons, IP securitisation might not be
seen as an attractive alternative compared to traditional forms of borrowing capital
due to the current low interest rate environment. Nonetheless, it might pick up in
future when the cost of borrowing rises, and when the IP industry matures and IP
becomes more recognised as a viable investment asset class by investors. Hence,
the Government should support IP securitisation activities via existing asset-backed
securitisation incentive schemes, where appropriate, to seize future opportunities
to serve Asian markets. In this way, Singapore can gradually build capabilities and
the right environment, to eventually position itself as the go-to place with the
requisite expertise and market connections to attract and structure IP securitisation
deals for the Asian markets in future.
22 US Securities and Exchange Commission, 2012. Sears Holdings Corporation. http://www.sec.gov/Archives/edgar/data/1310067/000144530512003689/shldq32012.htm (accessed Dec 2012).
23 American Banker, 2012. Barclays Works to Keep Recent Strength in Asset-Backed Securities. http://www.americanbanker.com/syndication/barclays-asset-backed-securities-1047956-1.html (accessed Dec 2012).
32
C. IP Funds
3.3.16. There has been a gradual growth in the number of sovereign and private funds
used to invest in IP assets worldwide. Such funds, also known as “IP funds”, can be
broadly classified as follows:
Patent funds, which invest in the purchase of titles to patents from third
parties, with the aim of gaining profits from their sale and licensing, and
where necessary from litigation of the infringements;
Technology development funds, which generally invest directly in targeted
IP-rich companies or IP portfolios.
Recommendation 2-3
Attract IP fund management activities to Singapore, to enhance the slate of IP
financing avenues and create spin-off demand on other sectors.
3.3.17. Like IP securities, IP funds can serve as an alternative source of financing for IP
companies. It allows the risks of individual IP assets to be pooled and managed
together. Depending on the structure of the fund, some may also help companies
commercialise their IP and bring their technology to market. The fund managers
and professionals, who are needed for the operation of IP funds, require skill sets in
both financial, IP, technology and commercialisation domains, and would add to
the types of job creation the Committee is seeking. Given this and other possible
spin-offs to Singapore’s economy, the Committee recommends that the
Government should leverage existing tax incentive schemes to attract more of
these funds and their management activities here.
3.4. IP VALUATION AND OTHER SUPPORT SERVICES
3.4.1. The IP marketplace ecosystem should be served by an IP services sector that
supports and facilitates IP transactions and management. Ensuring the presence of
a comprehensive suite of IP services is paramount, especially given Singapore’s
increasing focus on innovation and R&D. Such support services include IP
valuation, due diligence, strategy advisory, portfolio management, technology and
market intelligence, technology transfer, and commercialisation. It would be
beneficial for Singapore to continually improve its ability to function as a “one-stop
shop” for the provision of these various services to local and Asian companies.
3.4.2. In particular, the Committee is of the view that IP valuation stands at the core of
the marketplace as it underpins any IP transaction or financing activity. Singapore
33
should be proactive in ensuring this key capability is in place to support the growth
of the IP marketplace.
Challenges to IP valuation
3.4.3. IP valuation may be inherently more subjective and difficult to undertake, as
compared to the valuation of tangible assets. This is due to features unique to IP:
different types of IP, different maturity periods and applications of the IP, lack of
market transparency, complex and evolving technological landscapes, uncertainty
in potential economic damages in infringements, and the fact that IP by design are
“one of a kind”.
3.4.4. The Committee notes that there are already well-established international
standards governing the valuation of intangible assets in general. Within these
broad frameworks however, there can be ambiguity in the way assumptions are
made and specific methodology used to value IP assets, especially when dealing
with early stage IP. Hence, while IP valuation is a necessary step for the completion
of any IP transaction, there tends to be limited confidence in the valuation process.
This complicates the transactional process and adds to the transactional cost of
both parties. There is room for further collaborative research to promote greater
consistency and certainty in the valuation process for IP assets, to minimise the
risks for parties and encourage more transactions.
Recommendation 2-4
Set up a Centre of Excellence for IP Valuation to promote excellence in the research
and practice of valuation so as to support IP transactions.
3.4.5. The Committee recommends that the Government work with the industry to set up
a Centre of Excellence for IP Valuation. This Centre should build on the existing
body of knowledge in IP valuation research, frameworks and standards, and seek to
fulfil three main functions. Firstly, it should provide a platform for practitioners and
academics from around the world to collaborate on research and provide thought
leadership in IP valuation methodologies and best practices, with a focus on
generating industry-relevant and practicable insights. There could be analytics
systems developed to retain and apply these best-in-class valuation methodologies.
Secondly, the Centre should deliver training to raise competency within the
industry. Thirdly, the Centre should establish a baseline level of accreditation, in
collaboration with other international bodies where appropriate, to ensure a
minimum standard of proficiency in valuation services offered in Singapore. In so
doing, Singapore can establish itself as a world leader in this area. We can help to
promote industry norms and best practices that are accepted worldwide, raise the
34
level of confidence and trust in IP transactions, and support and stimulate
international IP transactions.
3.5. MARKETPLACE TRANSPARENCY
3.5.1. The IP marketplace can be complex and not easily understood. Coupled with the
inherent nature of IP transactions where the information is often scarce and
confidential, the barrier to entry into the IP marketplace can be quite high. With
these information gaps, buyers and sellers of IP assets would have to expend
considerable resources for various due diligence activities, before entering into an
IP transaction.
3.5.2. To address these inherent challenges to transacting IP, greater transparency and
certainty should be fostered in the IP marketplace. For one, greater transparency
can be achieved through the greater availability of IP transaction-related
information. This speeds up the due diligence process and boosts confidence in IP
transactions for all parties involved. Stronger certainty and assurance can also be
achieved via strong regulatory regimes and good corporate practices to protect
commercial and investment interests.24 This would benefit investors as they would
be better equipped to make an informed decision, and it would encourage
companies to pay more attention to how they manage their IP.
Recommendation 2-5
Work with industry to encourage positive practices that would enhance the
transparency of IP transactions.
3.5.3. To cultivate a vibrant IP marketplace, the Government should work with industry
players and IP rights holders to encourage good IP practices, such as the recordal of
IP transactions and related details with the Registrar, including the assignments,
licenses, security interests, and security interests of licenses, of IP rights. This
information should be easily accessible to facilitate due diligence efforts.
3.5.4. In particular, we recommend that the Government work with industry partners
such as the Singapore Exchange to review listing requirements and guidelines, such
that there are clearer guidelines to encourage more explicit disclosure of
information related to IP assets. This would increase market transparency by
providing financial markets with access to information on companies’ IP asset
holdings. Given the increasing importance of IP and other intangibles in driving the
24 For example, in February 2012, the Hong Kong Exchange issued a guidance letter to give greater clarity on the extent of IPR disclosures required for newly listed companies.
35
value of companies in future, such a move would help facilitate investor decision-
making and signal the value that Singapore places on IP assets.
36
CHAPTER 4
STRATEGIC OUTCOME 2: A HUB FOR QUALITY IP FILINGS
Strategy 3: Create a strong value proposition to attract IP filings, by offering world-class
services and strengthening international collaborations with other IP offices.
1. Build a search and examination (S&E) team capable of producing quality S&E services
expeditiously within publicised target timeframes, which should be equal to or better
than that offered by the best in the world, and cost-efficiently.
2. Build comprehensive international networks and collaborations with other IP offices to
develop Singapore as a gateway to other markets.
3. Grow a larger pool of Singapore-qualified patent agents with the necessary expertise to
cater to the needs of international companies and attract more patent work to
Singapore.
4.1. TRENDS IN GLOBAL IP FILINGS
4.1.1. The second strategic outcome is to build Singapore as a hub for quality IP filings.
The decision of whether to file for IP protection in a particular country often
depends primarily on the commercial returns of doing so. Although Singapore is
inherently disadvantaged due to our small domestic market size, we must aim to
punch above our weight as a Global IP Hub in Asia. Singapore can develop into a
hub for IP filings if we can offer a strong value proposition to inventors and
companies.
4.1.2. In terms of broad trends, global R&D activity and output are expected to grow,
especially in Asia. In recent times, Asia has seen the highest percentage of
trademarks, patents, and industrial designs filed (Figure 4.1.). In addition to the
rise of Asia in IP creation, companies are also looking to protect their IP in multiple
jurisdictions concurrently. In light of this, Singapore should seek to forge more
synergistic collaborations with the IP offices of other countries to provide greater
value-add to companies and attract IP filings to Singapore. The objective is not to
divert IP bound for other national IP offices to Singapore, but to attract IP filed in
Asia and other key global markets to also be filed in Singapore.
37
Figure 4.1.: Applications by geographical region, 2010. 25
4.1.3. The “IP Five” offices are in constant pursuit to improve their IP regimes in various
aspects, including increasing the quality of the examination processes and granted
IP, and enhancing resource management to reduce backlog. To attract more IP
filings to Singapore, we must constantly enhance our IP regime to align ourselves
with these top IP regimes and remain in step with international trends. We also
need to build a strong and vibrant IP services sector that is capable of supporting
the higher demand for IP services, which could in turn help to attract even more IP
filings to Singapore. Such a virtuous cycle can help create many high-value
employment opportunities for our IP professionals.
4.2. ROBUST AND WORLD-CLASS IP REGIME
4.2.1. The dynamic development of today’s business environment has brought all forms
of IP to the fore – from trademarks to designs to trade secrets – so as to accord
strong and holistic protection to a company’s intellectual creations. Some of the
recent global smartphone disputes, for example, hinged primarily on design patent
rights. In the UK, the Hargreaves Review focusing on copyright law made
25 WIPO. 2012 IP Facts and Figures. http://www.wipo.int/export/sites/www/freepublications/en/statistics/943/wipo_pub_943_2012.pdf (accessed Feb 2013).
38
recommendations to ensure that their IP framework is conducive to support
innovation and promote economic growth in the digital age.26 The nature of
trademarks and brands is also constantly evolving, and new IP owners are
increasingly inventing sophisticated and innovative trademarks. It is important for
Singapore to stay abreast of international and recent developments. Our IP
regimes across different types of IP should be regularly reviewed, including the
prosecution process. The standing and capabilities of the patent, trademark and
design professions should also be regularly reviewed and enhanced. This would
ensure that Singapore’s IP regimes not only meet international standards, but are
also progressive, world-class and supportive of the needs of IP owners.
4.2.2. Singapore has already made good headway in our patents regime. The Committee
reaffirms IPOS’ plans to move from a patent self-assessment system, where patent
applications need not fully fulfil Singapore’s patentability criteria, to a positive
grant system. Under the positive grant system, only patent applications which fully
meet patentability criteria and have received a positive S&E report can be granted.
The positive grant system will align our patent regime to those of major established
patent offices, and strengthen business and investor confidence in our patent
regime.
A. Patent Search and Examination Capabilities
4.2.3. The Committee applauds IPOS’ plan to build domestic S&E capabilities. To position
itself as a hub for IP filings, Singapore should build a strong patent S&E team
capable of providing applicants with quality S&E reports expeditiously and at a
reasonable cost. Having our own world-class S&E capabilities will also help develop
the suite of IP capabilities in Singapore, and burnish our credentials as a Global IP
Hub in Asia.
4.2.4. Certain national IP offices have over time built a reputation for providing best-in-
class S&E expertise in niche areas reflective of the strengths of their economic and
industry sectors. For example, the Korean Intellectual Property Office (KIPO) has
developed a strong reputation for their S&E expertise in consumer electronics,
particularly liquid crystal display (LCD) technologies. Similarly, IPOS should
distinguish itself through the strength of its S&E capabilities in niche technology
areas. The current technology areas that IPOS has identified – biomedical sciences,
electronics and IT – are in line with the strategic industry sectors that Singapore
26 Professor Ian Hargreaves, 2011. Digital Opportunity: A Review of Intellectual Property and Growth. http://www.ipo.gov.uk/ipreview-finalreport.pdf (accessed Feb 2013).
39
intends to grow. In the future, the S&E team could look towards providing a wider
range of services similar to that provided by the Danish Patent Office, such as prior
art search services.
Recommendation 3-1
Build a search and examination (S&E) team capable of producing quality S&E
services expeditiously within publicised target timeframes, which should be equal
to or better than that offered by the best in the world, and cost-efficiently.
4.2.5. It is recommended that Singapore continues to invest in building up S&E
capabilities to achieve a compelling value proposition for patent owners:
Quality – The standard of the S&E services must be best-in-class, in terms of
the quality of prior art searches and assessment of patentability. An S&E
report of good quality will give applicants the confidence that their resulting
patent is validated to the best international benchmarks.
Speed – The speed at which the S&E reports can be obtained must be fast.
IPOS could set and publicise target timeframes for S&E reports to be
produced. This will give certainty and attract applicants who wish to obtain
an S&E report quickly, in order to expedite patent prosecution and grant at
other IP offices, to first file in Singapore. Time is often of the essence for
companies looking to commercialise or license out their IP, or facing legal
disputes.
Cost efficiency – The cost at which S&E reports can be obtained must be
competitive in relation to other IP offices.
4.2.6. In addition, Singapore should strive to be recognised by WIPO as an International
Searching Authority (ISA) and International Preliminary Examining Authority (IPEA)
under the Patent Cooperation Treaty (PCT). This would raise the profile of our S&E
capabilities, and help build Singapore as an IP Hub capable of providing world-class
S&E services.
B. Provisional Patent Application System
4.2.7. The Committee studied the provisional patent application systems of the US and
Australia, which have gained favour amongst patent owners to whom obtaining a
priority date quickly is important. The provisional patent application system is
considered a cost-effective and flexible avenue for the filing of patent applications,
40
with the key features being the ability to secure a priority date quickly and at a
lower drafting cost because the patent application can be filed without claims.
4.2.8. The Committee found that Singapore’s patent registration system shares the key
features of the provisional patent application system. The cost of filing a patent
application at IPOS is comparable to that of filing a provisional patent application at
the USPTO. It is also possible for users to file a Singapore patent application
without claims (i.e. a “provisional-type” application) in order to expeditiously
secure a priority date, while saving on preliminary drafting costs. Table 4.1.
provides a comparison between the US’ provisional patent application system and
Singapore’s patent registration system.
Table 4.1.: Comparison between the US’ provisional patent application system and
Singapore’s patent registration system (as of Feb 2013).
Feature The US’ provisional patent
application system
Singapore’s patent application
system
Cost Lower cost as compared to
filing a non-provisional patent
application.
Cost of provisional patent
application for small / large
entities = US$125 / 250. 27
Fixed cost.
Cost of filing a Singapore
patent application = S$160.
Filing
Requirements
US provisional patent
application can be filed
without claims.
Singapore “provisional-type”
patent application can be filed
without claims.
Publication The provisional application is
automatically abandoned at
the end of 12 months and not
published.
The “provisional-type” patent
application is automatically
abandoned if the applicant
does not file claims, and is
hence not published.
27 USPTO, last revised 21 Feb 2013. Fee Schedule.
http://www.uspto.gov/web/offices/ac/qs/ope/fee100512.htm (accessed Feb 2013).
41
Feature The US’ provisional patent
application system
Singapore’s patent application
system
Term of
Protection
The patent term end-point is
20 years from date of filing of
a corresponding non-
provisional application.
The patent term end-point is
20 years from date of filing of
a second patent application
with claims (i.e. the “non-
provisional” patent application
equivalent) claiming priority
from the first “provisional-
type” patent application.28
4.2.9. However, the Committee found that while the Singapore patent registration
system offers the key features of the provisional patent application system, this is
not well known to the general IP community. As a result, companies for whom
securing a priority date quickly is important, perceive Singapore’s patent
registration system to be less attractive and file directly at other offices first.
4.2.10. The Committee recommends that Singapore profile more actively the availability
and features of the “provisional-type” patent application route in Singapore’s
patent registration system. This could take the form of greater publicity through
international IP conferences, publications and via the IPOS website.
C. Support Schemes for IP Filings
4.2.11. The cost of filing an IP is not insignificant. We should seek to support and
incentivise IP filings in Singapore, so as to increase the base load demand for IP
services.
4.2.12. In this aspect, the Committee acknowledges that there are existing tax incentives
for IP registration costs. Fees paid to any IP office, and fees paid to any agent for IP
prosecution, preparation of specifications and validity or infringement advice are
tax deductible at 100% under the Income Tax Act, and 400% under the Productivity
and Innovation Credit (PIC) scheme29. Such schemes are commendable, as they
help to encourage local companies and R&D institutes, as well as local subsidiaries
of foreign MNCs, to file in Singapore.
28 Similar to the US’ provisional patent application system, in Singapore, the 20-year patent term is calculated from the date of filing of a second “non-provisional” patent application that claims priority from a first “provisional-type” patent application. 29 Businesses can also choose to enjoy 60% cash payout under the PIC scheme.
42
4.3. INTERNATIONAL COLLABORATION WITH OTHER IP OFFICES
4.3.1. Singapore should build stronger collaborations with other IP offices, especially with
the “IP Five” offices and those from emerging economies, to develop Singapore as a
gateway to other key international markets. This could range from providing
training support for patent agents and industry professionals from other countries,
in collaboration with WIPO where useful, to collaborating with established offices
like the European Patent Office (EPO) and the Japan Patent Office (JPO) to train
S&E examiners from IPOS. This exchange of expertise will cross-fertilise IP practices
across the world, and enrich the broader IP ecosystem and know-how in Singapore.
A. Patent Prosecution Highway (PPH)
4.3.2. The PPH is an arrangement that enables the sharing of S&E results between patent
offices. Under the PPH, a patent application can enjoy accelerated examination
using the S&E results of a corresponding patent application filed at a PPH-linked
patent office. More recently, under the PCT-PPH programme, accelerated
examination can be requested based upon work done by certain ISAs or IPEAs
during the international phase of the PCT application.
4.3.3. The key advantages of the PPH are:
Cost savings – Generally, less correspondence with the examiner is required
for patent applications using PPHs. This translates to cost savings for the
applicant.
Greater chance of successful patent grant – On average, the success rate of
patent applications using PPHs is higher.30
Reduced pendency – PPHs can enable a patent application filed in particular
jurisdiction to be fast-tracked based upon the S&E results generated by
another patent office.
High quality – PPHs enable the applicant to use the S&E results from a
patent office recognised to produce work of a high quality. Also, PPHs
enable the second office to have access to information gathered from
additional databases (e.g. technical databases, local databases, databases in
30
For example, at the USPTO, more than 90% of PPH cases are allowed. The allowance rate for non-PPH cases at the USPTO is less than 50%. (USPTO. PPH Brochure. http://www.uspto.gov/patents/init_events/pph/pphbrochure.pdf (accessed Feb 2013)).
43
other languages), thereby enhancing the quality of prior art assessment.
This ultimately benefits the patent applicant.
4.3.4. The popularity of PPHs is growing around the world. In Singapore, PPHs have been
established with the USPTO and the JPO in 2009. A third PPH with KIPO has
commenced in Jan 2013. However, the use of Singapore’s existing PPHs is low at
present – this is likely due to the low awareness and appreciation by applicants on
the advantages of the PPHs.31 We should enhance the profile of our existing PPHs,
and actively encourage the use of PPHs among companies in Singapore.
Recommendation 3-2
Build comprehensive international networks and collaborations with other IP
offices to develop Singapore as a gateway to other markets.
4.3.5. Singapore should seek to grow our collaborations with other IP offices of
comparable quality and standing. For example, Singapore should accelerate efforts
in building a comprehensive network of PPHs, particularly with key IP offices such
as the State Intellectual Property Office (SIPO) of the People’s Republic of China.
This is a mutually beneficial arrangement that would also benefit the partnering
patent offices as it helps to reduce the workload and case backlog.
4.3.6. IP owners primarily file their IP in markets where there is commercial interest.
However, a strong network of PPHs working in tandem with world-class S&E
capabilities can help Singapore, despite our small domestic market, to grow as a
choice venue for quality patent filings, where applicants can obtain cost-effective
and quality S&E reports quickly to expedite patent prosecution in other national IP
offices. This would add to the overall attractiveness of filing first in Singapore, and
using Singapore as a gateway to enter other markets.
4.3.7. Singapore should also encourage foreign IP offices to set up a presence, as WIPO
has done, and even offer substantive services, from here. This would allow foreign
IP offices to better support their Asian clientele. This is particularly relevant given
the growing volume of IP filings by Asian applicants, and with the liberalisation of
Singapore’s patent agent sector, the greater number of foreign-qualified patent
agents serving Asian clients from Singapore in the future.
31 To date, there have been nine applications under the IPOS-USPTO PPH and eight applications under the IPOS-JPO PPH.
44
B. Collaboration within ASEAN
4.3.8. Singapore as an IP Hub should seek to serve the needs of our ASEAN partners.
Given the goal of establishing the ASEAN Economic Community by 2015, we can
expect more trade flows within ASEAN. The ASEAN Working Group on Intellectual
Property Cooperation (AWGIPC) was established to develop, coordinate and
implement all IP-related regional programmes and activities in ASEAN, with its work
guided by the ASEAN IP Rights Action Plan and the ASEAN Economic Blueprint.
4.3.9. With the current largest share of patents filed in ASEAN, Singapore should take the
lead to foster stronger cooperation to facilitate the protection of IP within ASEAN
countries. In this regard, the Committee is of the view that the ASEAN Patent
Examination Cooperation (ASPEC) programme is a laudable first step. The ASPEC
programme streamlines patent prosecution by allowing S&E work conducted by a
participating IP office to serve as a reference to another participating IP office. This
reduces duplication of S&E work, hence facilitating quicker patent prosecution and
reducing time to patent grant. We should encourage the use of ASPEC programme,
for example by increasing publicity among IP owners and practitioners to raise
awareness about the benefits of the ASPEC programme.
4.3.10. Under the ASEAN IP Rights Action Plan, Singapore is the lead country for ASEAN
capacity building for patent officers and attorneys. Hence, we should enhance the
overall quality of the pool of patent professionals in ASEAN and support the overall
capacity building needs of the region. We should leverage the IP Competency
Framework (IPCF)32 and work towards exporting the IPCF to benefit other countries
looking to build up their IP manpower capabilities.
4.4. A STRONG AND VIBRANT PATENT AGENT SECTOR
4.4.1. The commitment of many Asian countries to the continued and increased
investment in R&D will increase the demand for IP protection in this region. As
Asian-based companies venture into overseas markets, they will require the
services of patent agents and firms with expertise in their markets of interest. If
Singapore can build a strong and vibrant patent agent sector capable of providing
high quality local and international patent services, we can attract more work to
Singapore and grow the overall pie for our patent agent industry.
4.4.2. The liberalisation of Singapore’s patent agent regulatory regime to allow foreign-
qualified patent agents to undertake offshore work in Singapore will help to
32 Refer to Chapter 6 for more details.
45
deepen and broaden the available patent agent expertise in Singapore. The
presence of foreign patent firms in Singapore will provide companies with
increased access to international patent expertise, and boost the vibrancy of
Singapore’s patent agent sector.
4.4.3. Nonetheless, Singapore cannot rely solely on foreign-qualified patent agents; we
must also continue to develop a strong core of Singapore-qualified patent agents.
Growth in Singapore patent filings is expected as domestic R&D activity and output
pick up across a wide range of technology disciplines, and as other IP Hub
recommendations bear fruit. A world-class S&E team and PPH network will help
attract more filings in Singapore which will need to be supported by a larger pool of
Singapore-qualified patent agents. A larger pool of local patent agents will also
help enrich the entire IP ecosystem as patent agents, with their specialised training
and skill sets, can progress and inject talent into other fields of the IP industry. In
the long run, Singapore-qualified patent agents should be encouraged to take
stronger ownership in developing and raising their profession to the next level.
Recommendation 3-3
Grow a larger pool of Singapore-qualified patent agents with the necessary
expertise to cater to the needs of international companies and attract more patent
work to Singapore.
4.4.4. The Committee recommends that efforts be undertaken to grow the pool of
Singapore-qualified patent agents. The current patent agent qualification and
training regime should be enhanced with a view of developing a larger pool of
Singapore-qualified patent agents with the necessary skill sets to support the future
growth of the industry. The current system of training Singapore-qualified patent
agents can be improved. While the current pass rates of the qualifying
examinations and time required to qualify as a patent agent are reasonable
compared to international benchmarks,33 they can be daunting for engineering and
science graduates who are considering joining the profession. Given the strong
competition for talent in Singapore, we need to consider how the system can be
improved to better draw high-calibre graduates and mid-careerists into the
profession. To support training for patent agent trainees and attract new entrants
into the profession, access to training programmes could be funded or subsidised,
e.g. via scholarships.
33 The qualifying examinations comprise 4 papers covering the preparation of patent specifications, the amendment of patent specifications, the infringement and validity of Singapore patents, and the patent law in Singapore. Typically, patent agent trainees take about 4 years to pass all 4 papers.
46
4.4.5. Singapore-qualified patent agents should also be encouraged to broaden their
expertise, e.g. through funded or subsidised continuing professional development.
The marriage of patent agent skills with legal expertise and commercial know-how
will command a higher premium in today’s complex globalised operating
environment, where companies’ international business strategies are often
inextricably tied to their IP strategy across different jurisdictions and IP regimes.
Those with requisite legal qualifications can also provide legal services, including IP
litigation, in addition to patent agency work. The availability of such talent and
expertise will also strengthen Singapore’s push to be a more attractive centre for
IP-related alternative dispute resolution (ADR). Singapore-qualified patent agents
must be able to provide Asian clients with a strong value proposition. They should
expand their knowledge base beyond Singapore’s patent laws, to include
awareness and knowledge of the IP laws and practices of other countries, such as
those of ASEAN countries. They can also differentiate themselves by going beyond
conventional services like patent drafting and prosecution, to acquire skill sets in
other value-added IP services such as patent landscape mapping, and patent
portfolio analysis, to meet the needs of IP owners looking for “one-stop shop”
services. These additional skill sets or qualifications can help provide multiple
pathways for patent agents’ career progression and development, and enrich the
talent pool in our IP ecosystem in the long run.
47
CHAPTER 5
STRATEGIC OUTCOME 3: A HUB FOR IP DISPUTE RESOLUTION
Strategy 4: Develop Singapore as a choice venue for IP dispute resolution, through a
strong IP Court and deep IP alternative dispute resolution (ADR) capabilities.
1. Enhance the profile and strengthen the capabilities of Singapore’s IP Court to attract
more IP litigation to Singapore.
2. Establish a panel of top international IP arbitrators in Singapore to enhance the
international profile of Singapore’s IP ADR capabilities and attract more IP-related ADR
cases to Singapore.
5.1. IP DISPUTE RESOLUTION: TRENDS AND OPPORTUNITIES
5.1.1. Globally, IP disputes are on the rise. In China alone, the number of civil IP cases
accepted by the local Courts in 2011 was more than 59,000, up by approximately
40% as compared to 2010.34 As the global economy becomes progressively
knowledge-based and the technology landscape grows in complexity, IP assets will
become more and more important to secure competitive and strategic advantages
for companies. The global nature of modern business sees companies challenged
by new rivals at an increasing frequency, not just in overseas markets but also
within their home market. These factors will inevitably lead to more IP disputes.
5.1.2. IP disputes can be resolved through litigation or alternative dispute resolution
(ADR) avenues such as arbitration and mediation. Companies are actively seeking
expeditious, cost-efficient and just avenues to resolve their IP disputes. In Europe,
Germany, Netherlands and the UK are recognised as the de facto “first stops” for
companies to file litigation suits for their IP disputes, due to the quality and
efficiency of the respective courts. In the UK, for example, the Patents Court and
Patents County Court have implemented specialised procedures for IP cases, with
active case management by specifically appointed IP Judges.35 In particular, the
Patents County Court is gaining favour among IP owners, largely due to the
34 Bridge IP Law, 2012. China Supreme People’s Court: Latest IPR Related Cases Data of 2011 in China. http://www.chinaiplawyer.com/china-supreme-peoples-court-latest-ipr-related-cases-data-2011-china/ (accessed Feb 2013). 35 The Patents Court is a specialised Court within the Chancery Division of the High Court of Justice of England and Wales. The Patents County Court (PCC) is an alternative venue to the Patents Court, and was established with the intention that it should be a forum where simpler cases could be dealt with under a cheaper and more streamlined procedure.
48
streamlined procedures which have made case resolution faster,36 and the high
regard IP practitioners have for the current presiding Judge.
5.1.3. The ADR avenues of arbitration and mediation are gaining traction, albeit slowly, as
viable options for IP dispute resolution. They provide parties with more control
over the dispute resolution process and, if well managed, save parties time and
money. In addition, the consensual nature of ADR often results in a less adversarial
process, which is attractive for parties wishing to maintain a good business
relationship. To date, the WIPO Arbitration and Mediation Centre (AMC) has
administered over 280 mediation and arbitration cases, with most of the cases
being filed in the last few years. 37
5.1.4. Singapore should aim to develop itself as one of the world’s leading IP dispute
resolution centres. As more transactional and management activities take place in
Singapore, stronger dispute resolution capabilities would be needed. Conversely,
our ability to resolve IP disputes in an expeditious, just and amicable manner can
also help attract more IP transactional and management activities.
5.1.5. Since IP rights are territorial, where the underlying IP is registered in Singapore, the
natural consequence is for disputes concerning such IP to be litigated here. In this
respect, our strategic goal to be a hub for IP dispute resolution will go hand-in-hand
with the strategic outcome of being a hub for quality IP filings, which is aimed at
attracting more IP filings to Singapore. At the same time, Singapore should also
aim to position itself as a preferred choice for the arbitration of disputes involving
IP that is not registered in Singapore.
5.2. POSITIONING SINGAPORE AS A CHOICE VENUE IN ASIA FOR IP LITIGATION
5.2.1. While IP laws and judicial systems are territorial and sovereign in nature, a
judgment issued by one country, particularly one with a respected judiciary, could
potentially carry persuasive weight for the corresponding disputes in the courts of
other countries. This could potentially provide reason for IP rights holders to
litigate their IP disputes in Singapore, if Singapore can build an efficient, cost-
effective and high quality judicial system to resolve such disputes.
5.2.2. Singapore is in good stead, having built a highly regarded judiciary, with an
international reputation for quality judgments and efficiency. In February 2002,
36 The Civil Procedure (Amendment No. 2) Rules 2010 came into force on 1 October 2010. The amended rules brought in streamlined procedures and a fixed scale of costs, which is normally capped at £50,000. 37 WIPO. WIPO caseload summary. http://www.wipo.int/amc/en/center/caseload.html (accessed Feb 2013).
49
Singapore established a specialist IP court within the High Court, in recognition that
IP cases can be highly complex and technical in nature, and that the Judges
handling such cases need to be familiar with the area of IP law. There are currently
four designated IP Judges, namely Justice Tan Lee Meng, Justice Tay Yong Kwang,
Justice Lee Seiu Kin and Justice Chan Seng Onn, each with substantial expertise and
experience in handling IP cases38.
5.2.3. The IP Court has also adopted tailored processes to facilitate the resolution of IP
cases, with the key features summarised in Table 5.1. below. A semi-docket system
for IP cases was introduced in 2011 to allow for specialised management of IP
cases. All IP cases are managed by a designated Senior Assistant Registrar who
conducts all pre-trial conferences and hears all summonses for directions
applications. A designated Assistant Registrar is also assigned to each IP case, and
will hear and decide on all interlocutory applications, and conduct inquiries for
post-trial assessment of damages or accounting of profits. Such continuity allows
the Senior Assistant Registrar and Assistant Registrar to be familiar with their
assigned IP cases, thus enabling significant time savings during proceedings.
Table 5.1.: Key features of Singapore’s IP Court.
Pre-trial case management Post-trial case management
Progress of IP cases separately
managed and tracked.
More time allocated for pre-trial
conferences of IP cases to deal with
issues unique to IP cases.39
Specific Senior Assistant Registrar /
Assistant Registrar with IP
experience and expertise or training
assigned to each case for continuity.
Interlocutory appeals and trials on
liability are heard before designated
IP Judges (subject to availability).
IP cases managed separately with
more time allocated for post-trial
conferences.
Limited post-trial discovery.
Tailored procedure for assessment of
damages.
Tailored procedure for accounting of
profits.
5.2.4. The Committee has observed that the awareness of the establishment of the IP
Court and designation of specific IP Judges is low among local and foreign
38 There may be IP cases, such as those involving broader commercial disputes, that are heard by other Judges. Similarly, the four IP Judges may also hear other non-IP cases. 39 For example: technical nature of scientific expert evidence; protection and ring-fencing of confidential information during discovery; and the specialised procedures for ascertaining the extent of infringement, particularly patent infringement.
50
practitioners and rights holders. More can be done to raise the profile of our IP
Court and to continue strengthening its capabilities to hear IP cases.
Recommendation 4-1
Enhance the profile and strengthen the capabilities of Singapore’s IP Court to
attract more IP litigation to Singapore.
5.2.5. The Committee recommends stepping up efforts to raise the domestic and
international profile of our IP Court and IP Judges. There should be sustained
publicity, for example using international publications and events, to raise
awareness of the capabilities of our IP Court. In addition, our IP Judges could
contribute to international legal publications, and participate in relevant
international conferences, to help raise the profile of our IP Court and assert
thought leadership in the development of IP jurisprudence.
5.2.6. The Committee also recommends for Singapore to position itself as a choice venue
for parties seeking to obtain a reference judgment for their global disputes. In this
regard, the speed at which the judgment can be obtained and the quality of the
judgment are critical. In line with plans to study the feasibility of establishing the
Singapore International Commercial Court (SICC), the Government could consider
whether IP disputes could feature in the SICC.
5.2.7. The Committee applauds the tailored processes adopted by the IP Court to
facilitate the resolution of IP cases. The IP Court should regularly review these
processes to keep pace with the best practices of IP Courts around the world and
ensure expeditious disposal of IP cases. The Committee also recommends for the
Court to consider the establishment of a specialised docket system (or case
management system) for IP cases where IP Judges are assigned to IP cases at an
earlier juncture. This would allow IP judges to build greater familiarity with their
assigned IP cases from an early stage in the case management process, and thus
enhance the efficiency of case disposal. In addition, the specialised docket system
would also facilitate more IP cases being heard by designated IP Judges, and hence
help to build greater IP experience within the bench.
5.2.8. The adjudication function of our IP Court can also be further supported, since IP
cases can prove to be extremely challenging, particularly those involving patents, as
it can involve highly technical and specialised expertise across a wide spectrum of
technological disciplines. The Committee recommends that the Court more
actively considers the appointment of amicus curiae and assessors to support its
adjudication functions. Amicus curiae can aid the Court in understanding complex
or technical areas of law, and Court-appointed technical experts, or assessors, can
51
assist with technical / scientific issues. The specialised docket system will also allow
the IP Judges to make an assessment earlier and more accurately whether a case
would require and benefit from the appointment of amicus curiae or assessors.
5.2.9. To increase the pool of local and foreign technical experts available, particularly for
niche technology areas, Singapore should facilitate the access to technical experts
to participate as assessors or expert witnesses in IP cases heard in the IP Court. In
view of the feedback from local practitioners that such experts are not always
easily identified, the Committee recommends establishing a directory of technical
experts (both local and foreign) to increase the accessibility of these experts to IP
practitioners and the Court. This directory should be maintained independently of
the Court. It should be prepared in collaboration with IP practitioners and industry
stakeholders to ensure its relevance and utility to industry.
5.3. PROMOTING THE USE OF ALTERNATIVE DISPUTE RESOLUTION FOR RESOLVING IP
DISPUTES
5.3.1. Strong economic growth in China, India, and the ASEAN region, has led to more
commercial engagements and collaboration, and parties are starting to avail
themselves of ADR avenues such as arbitration, mediation and expert
determination to resolve disputes in an amicable manner.
5.3.2. Arbitration is typically used where parties want to avoid the time and cost of
litigation, but at the same time want a decision based on the legal facts and
evidence of the case. Mediation is a more informal process as compared to
arbitration, where the focus is on moving the parties toward settlement through
compromise and negotiation instead of solely based on the legal facts and evidence
of the case. Both arbitration and mediation are well suited for resolving IP licensing
and contractual disputes. In expert determination, a dispute is submitted, by
agreement of the parties, to one or more experts who make a determination on
the matter referred. Expert determination is a particularly flexible avenue as it may
be used on a stand-alone basis or in connection with an arbitration, mediation or
Court litigation case.
5.3.3. Nonetheless, the use of ADR to resolve IP disputes, particularly those involving
validity and infringement issues, is still relatively uncommon. This may be due to
the following reasons:
Uncertainty of the arbitrability of IP disputes, particularly disputes involving
IP validity, and the corresponding uncertainty of the enforceability of
arbitral decision of such disputes, across different jurisdictions.
52
Conventional preference and familiarity of parties of using litigation to
resolve IP-related disputes.40 This could be due to IP being territorial in
nature.
- Companies may favour going to Court depending on their
international business strategies, for example to seek immediate
injunctions on their competitors.
- In most jurisdictions, the finality of an arbitral award limits the scope
of appeal. Parties may prefer litigation due to the ability to appeal a
court judgment.
Lack of a contractual relationship between parties of IP disputes. More
often than not, IP infringement disputes occur between parties without
prior contractual relationship.
5.3.4. However, with the increase in collaborations between technology companies on
R&D and commercialisation, there may be increasing contractual disputes on the
creation, management and use of IP rights. The Committee is of the view that
companies could increasingly turn to ADR avenues to resolve contractual and
licensing-type disputes, especially those cross-border in nature, due to the
duration, complexity and costs of court litigation.
5.3.5. ADR avenues can afford significant advantages over litigation. For example,
arbitration allows cross-border business disputes to be addressed at a single
arbitral forum. This is attractive given the multi-jurisdictional nature of commercial
agreements and the complexity of navigating legal systems between different
countries. International enforcement of arbitral awards are also facilitated through
the Convention on the Recognition and Enforcement of Foreign Arbitral Awards
(New York Convention). In addition, well-managed ADR cases can often lead to
significant cost savings.41
5.3.6. Singapore’s ADR landscape has progressed significantly over the years. Our efforts
to develop the arbitration scene in Singapore has paid off, with a 2010
40
WIPO, Guide to WIPO Arbitration.
http://www.wipo.int/freepublications/en/arbitration/919/wipo_pub_919.pdf (accessed Feb 2013). 41 Court litigation costs in many countries can range from US$65,000 to US$4,000,000. Based on WIPO Arbitration and Mediation Centre’s experience, average mediation costs range from US$6,000 to US$60,000. (WIPO, 2010. A Cost-Effective Alternative. http://www.wipo.int/wipo_magazine/en/2010/01/article_0008.html (accessed Dec 2012)).
53
collaborative study by White & Case LLP and the School of International Arbitration,
Queen Mary University of London,42 recognising Singapore as the most popular
Asian seat for arbitration. In 2010, WIPO set up an AMC, the first office outside
Geneva, in Singapore. The WIPO AMC provides avenues for the resolution of
international commercial disputes between parties, and is recognised as a neutral,
international forum for the resolution of cross-border and cross-cultural disputes.
In addition to offering procedural dispute resolution guidance in choosing or
adjusting dispute resolution clauses and administering procedures under WIPO
Rules, the WIPO AMC also organises training on ADR of IP-related disputes.
5.3.7. Singapore’s commitment to build IP ADR capabilities is also underscored by a
Memorandum of Understanding signed between IPOS and WIPO in 2011, which
allows parties to resolve IP disputes that involve ownership and validity of IP rights
registered in Singapore via mediation at the WIPO AMC. IPOS is also looking to set
up a team of IP expert adjudicators comprising eminent IP professionals to resolve
IP disputes filed with IPOS. These procedures will increase the options available for
parties to settle their disputes in Singapore.
Recommendation 4-2
Establish a panel of top international IP arbitrators in Singapore to enhance the
international profile of Singapore’s IP ADR capabilities and attract more IP-related
ADR cases to Singapore.
5.3.8. The Committee recommends that Singapore establish a panel of arbitrators who
are internationally acknowledged to be the “best-in-class” for IP cases, comprising
eminent experts steeped in IP laws, IP industry practices and technological
disciplines, to help draw more IP ADR cases to Singapore. Companies need to have
utmost confidence in the credentials of these arbitrators to consider subjecting
their disputes to arbitration. We should also more actively promote and publicise
Singapore’s IP ADR capabilities internationally, in close collaboration with the
various ADR institutes in Singapore such as the WIPO AMC, the Singapore
Mediation Center and SIAC.
42 White & Case, 2010. 2010 International Arbitration Survey: Choices in International Arbitration. http://www.whitecase.com/files/upload/fileRepository/2010International_Arbitration_Survey_Choices_in_International_Arbitration.pdf (accessed Feb 2013).
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CHAPTER 6
ENABLER 1: SKILLED MANPOWER RESOURCES NETWORKED TO THE
REGION AND BEYOND
Strategy 5: Build a globally competitive IP workforce that is equipped with specialised IP
skill sets and networked to other markets, and support the continued professional
development of IP professionals.
1. Develop strategic areas of expertise under the IP Competency Framework (IPCF), with
specific focus on, but not limited to, Patent Agents, IP Management Directors, IP
Strategists and IP Valuation Analysts, and to serve as a training hub for IP professionals
in the region to better create a strong network of IP skills and expertise across
jurisdictions.
2. Seed interest in various IP career paths and develop understanding of IP from an early
stage, so as to position the IP profession as a rewarding one.
6.1. MANPOWER CAPABILITIES: LOOKING AHEAD
6.1.1. Human capital development in IP will be critical to support and sustain the key
strategic outcomes of Singapore as a Global IP Hub in Asia. Singapore is already
ahead of other countries in producing world-class IP manpower capabilities, given
the high quality of its workforce with a strong background in science and
technology, and linguistic abilities. We should ride on these advantages to build a
strong pool of IP expertise in strategic, market-relevant disciplines that will be
instrumental in the future growth of the global IP landscape. Given that it will take
time to strengthen the talent flow and nurture expertise in the IP sector, we must
adopt a forward looking and proactive approach to ensure that the manpower
capabilities are in place when the demand for IP services picks up.
6.1.2. Importantly, as a bona fide IP Hub, our professionals in Singapore must be
knowledgeable about the IP environments and be plugged into the network of
Asian markets and beyond. They must interact and build strong linkages with
established professionals, firms and industry in other markets in order to effectively
serve the international needs of companies. Singapore should serve as a training
hub for IP professionals in the region to better support the integration of IP skills
and expertise across jurisdictions. Our strengths of having a multilingual workforce
and ability to aggregate different linguistics capabilities can also be leveraged to
help translate and access the non-English body of IP literature in Asia. This would
further strengthen our role as an IP gateway for Asia.
55
6.2. IP COMPETENCY FRAMEWORK
6.2.1. The IP Competency Framework (IPCF) has been developed by IPOS to define the
competencies required for key IP professionals and practitioners in the industry,
and to accredit the attainment of these competencies into Continuing Professional
Development qualifications recognised by the industry. The IPCF covers a wide
range of IP expertise, and a brief summary of these job roles is provided in Figure
6.1.
Figure 6.1.: Summary of IP expertise under the IPCF.
6.2.2. A holistic IP ecosystem will need to be supported by a comprehensive pool of
professionals across the IP value chain. Based on industry feedback, Singapore’s IP
and innovation sectors would benefit if there were stronger expertise in the
commercialisation aspect of the value chain. This would include Technology
Transfer Managers (translating research areas and early stage technologies into
new products through prototyping and commercialisation) and IP Managers
(having a keen understanding of technology and negotiating licensing agreements
to bring new technologies to the market). It is encouraging that the development
of these professionals will be covered under the IPCF.
IP EXPERTISE
IP Legal
Senior IP Counsel Chief Legal Officers IP Legal Advisors IP Mediators / Arbitrators IP Lawyers IP Legal Associates IP Paralegals
IP Valuation and Finance
IP Financial Advisors IP Valuation Analysts IP Valuers, Investors, Financiers and Insurers
IP Technology / Commerciali-
sation
Chief Technology Officers IP Management Directors IP / R&D / Technology Transfer Managers IP Engineers IP Administrators
IP Drafting and Prosecution
Patent Strategists Patent Agents / Examiners Trademark Agents / Examiners Patent Associates IP Paralegals IP Administrators
IP Intelligence and Strategy
Chief IP Officers IP Management Consultants IP Brokers IP Information Analysts IP Executives
56
6.2.3. The IPCF provides tailored and structured multi-disciplinary training pathways for IP
professionals, new entrants and even mid-careerists. Multiple career pathways are
articulated for both lateral and vertical career advancement. Hence, this
framework maps out opportunities for professionals to explore and maximise their
potential across different disciplines (e.g. business, finance, technical, legal, etc.), in
various job roles across the IP sector.
Box 6.1: Illustration of multiple pathways offered by the IPCF.
Example: Options for Technical Specialists
Technical specialists in R&D-related fields, e.g. researchers, scientists and
engineers (RSEs), can undergo customised IP technology advisory training
programs in IP management, technology transfer and R&D management to move
laterally and / or advance vertically, eventually becoming R&D managers and so
on. Those keen on further advancement could focus on training to take on
higher-level technical advisory and business development roles. They could also
consider alternative career paths for other IP job roles such as Patent Agents or
Patent Examiners.
6.2.4. Given the backdrop in Asia and ASEAN, there will be strategic areas of manpower
expertise that Singapore should develop in order to gain a strong competitive edge
over other countries. These are specialised skill sets highly sought after by
companies and IP service providers looking to establish operations in Singapore, as
well as offshore firms aiming to protect, commercialise and actively manage their IP
in Asia.
Recommendation 5-1
Develop strategic areas of expertise under the IP Competency Framework (IPCF),
with specific focus on, but not limited to Patent Agents, IP Management Directors,
IP Strategists and IP Valuation Analysts, and to serve as a training hub for IP
professionals in the region to better create a strong network of IP skills and
expertise across jurisdictions.
6.2.5. Singapore should invest in developing a broad range of expertise spanning different
areas of the IP value chain. Among these, there should be a strong focus on (but
not limited to) the following areas of specialisation:
Patent Agents — Act for clients in the drafting and prosecution of patents
and render advice on patentability of clients’ inventions. As mentioned in
Chapter 4, there is scope to grow a larger pool of quality patent agents with
knowledge of IP laws and practices of other countries and skill sets that
extend beyond conventional services such as patent drafting and
57
prosecution.
IP Management Directors — Experts with a strong background in
technology and business experience who guide companies to extract
maximum value from their IP. These professionals can appreciate the
technicalities of IP (e.g. patent claims), and at the same time bring
technology foresight and market intelligence to bear in the exploitation of
IP.
IP Strategists (IP Financial Advisors; Chief Technology Officers; Patent
Strategists; Chief IP Officers) – Professionals at a higher level managerial /
executive role with experience in law, technology and business who are able
to assess, refine and implement a company’s overall IP plans (e.g.
protection, commercialisation, enforcement). They also formulate and
manage the company’s overall portfolio development and corporate
strategies, business priorities and collaboration with technology and
business leaders.
IP Valuation Analysts – Provide financial analysis and valuation of a
company's IP rights (intangible assets) to develop and implement strategies
and processes for managing IP portfolios. These professionals also provide
consultation involving IP valuation (e.g. valuation of IP for business dealings
such as investments or divestitures), and conduct feasibility studies, royalty
rate studies and business due diligence.
6.2.6. Mid-level job roles under the IPCF should be developed to allow IP professionals to
eventually move upwards or to provide specialised support to the four strategic
areas of focus listed above. These roles include IP / R&D / Technology Transfer
Managers, IP Management Consultants, IP Brokers, IP Information Analysts, IP
Valuers, Investors, Financiers and Insurers.
6.2.7. The IPCF should also aim to develop the legal and administrative IP services sector
by ensuring the availability of a sufficient pool of quality professionals such as Chief
Legal Officers, IP Legal Advisors, IP Mediators / Arbitrators, IP Legal Associates, IP
Paralegals and IP Administrators to support the increased volume of IP-related
activities in future.
6.2.8. The IPCF should be constantly updated to reflect the strategic skill sets required to
drive the development of Singapore as a Global IP Hub in Asia. IPOS should
continue to work with industry partners to refine and update the framework, and
also to design and deliver continuing education programmes and opportunities for
58
lateral movement and vertical progression. Training should also be supplemented
with industry attachments to gain hands-on experience. The Government should
devote the necessary resources and investment to support the development of
critical IP human capital in Singapore, and to build Singapore as an IP training hub
for the region.
6.2.9. Additionally, Singapore should promote the IPCF and associated training
programmes, to support other countries in building up their IP manpower
capabilities. There is potential for synergistic collaborations, to draw a wider group
of trainers in the region who are steeped in this industry. Through increased
interaction between local and international IP professionals, there would be
opportunities for international IP professionals to train local professionals, and vice
versa, to foster a stronger understanding of IP regimes across jurisdictions and
promulgate best practices. Singapore should serve as an IP training hub for the
region, and as a key node for IP professionals and stakeholders to network through
such capability development efforts.
6.2.10. As the skill sets of the IP professionals are highly specific, cross-disciplinary, and
need to be supported by substantive experience, it will take significant time to
grow a local pool of IP professionals. In the interim, Singapore should also look
towards attracting experienced international IP professionals to shore up expertise
and knowledge, train local professionals, and bring their international work to
Singapore.
6.3. POSITIONING THE IP PROFESSION AS A REWARDING CAREER
6.3.1. In line with the efforts to develop strong IP expertise to support our IP ecosystem,
Singapore should endeavour to imbue a higher level of professional pride amongst
the various IP professionals. Many IP professionals in countries like Germany,
Japan, the UK and the US are highly regarded and recognised to provide valuable
expertise to companies in their business transactions and IP protection. In this
regard, the Committee supports IPOS’ move to amend legislation to adopt the term
“Patent Attorneys” for Patent Agents, to accord them due recognition for their
professional standing.
6.3.2. Singapore needs to ensure that there is a steady pipeline of talent feeding into the
IP ecosystem. The Committee is aware that polytechnics and universities currently
offer courses and degree programs that feature IP-related education. For example,
IPA-NUS run a Master of Science in Intellectual Property Management, while NTU
conducts a Master of Science in Technopreneurship & Innovation and Renaissance
Engineering Programme where IP management constitutes a compulsory module
59
for students. Some polytechnics also conduct modules that cover basic principles
of IP management and protection.
6.3.3. Nonetheless, the Committee feels that there is a general lack of awareness of IP
professions among our students and more could be done to engage them from an
early stage.
Recommendation 5-2
Seed interest in various IP career paths and develop understanding of IP from an
early stage, so as to position the IP profession as a rewarding one.
6.3.4. We should aim to develop some level of understanding of the IP fields and
professions, and instil IP savvy early amongst our graduates and pre-tertiary
students, to ensure that they are equipped with the basic knowledge required to
manage intellectual capital. The Committee recommends that Government start
scholarship schemes to encourage students to pursue IP-related careers. IPOS
should also try to work with the industry to raise awareness of the various
professions in the IP sector and the understanding of issues in IP disciplines,
amongst graduates and students.
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CHAPTER 7
ENABLER 2: A CONDUCIVE AND PROGRESSIVE ENVIRONMENT FOR
IP ACTIVITIES
Strategy 6: Enhance the tax environment to attract and anchor IP portfolios and
substantive management activities.
1. Implement an IP Box or similar tax regime to provide greater transparency and certainty
in Singapore’s IP tax regime.
Strategy 7: Nurture a progressive environment that shapes and promotes IP thought
leadership, and builds international perception.
1. Establish flagship IP and innovation-related conferences and host international IP
conferences in Singapore, to advance and enrich IP discourse in Asia.
2. Convene an international advisory panel to guide the development of Singapore as a
Global IP Hub in Asia.
3. Encourage more Asia-centric, multi-disciplinary IP research in Singapore.
7.1. A RICH ECOSYSTEM OF IP ACTIVITIES
7.1.1. Beyond skilled resources, it is equally important to have a conducive and
progressive environment to encourage companies and professionals from around
the world to bring their IP activities to Singapore. Creating this broader appeal is
pivotal, given that IP assets, professionals and activities are highly mobile. We
need to continually draw the movers and shakers of the corporate world to
Singapore to participate in our IP ecosystem, in order to cement our position as a
hive of regional and global IP activities. This includes key decision makers shaping
the overall IP direction of businesses, established IP service providers, eminent IP
academics and researchers, IP investors, as well as IP creators. The various
stakeholders would be able to interact and collaborate with each another in a
complementary and synergistic manner, and create a rich IP ecosystem that would
strengthen international perception of Singapore as a world-class IP Hub.
7.2. ATTRACTING IP PORTFOLIOS AND MANAGEMENT FUNCTIONS THROUGH A
COMPETITIVE IP TAX ENVIRONMENT
7.2.1. To attract a larger pool of IP assets and professionals, Singapore should create a
favourable environment for IP portfolio and management functions. IP owners,
e.g. Apple, HP, IBM, McDonalds and Qualcomm, can generate significant revenue
from licensing and sale of their IP. Such activities are usually managed by a team of
professionals who drive the companies’ strategy (e.g. monetising IP, strategic
61
acquisition of IP assets, enforcement of IP rights). Hence, attracting more
companies and intermediaries to manage their IP portfolios and site IP
management functions in Singapore will add greatly to the IP ecosystem in terms of
high-end employment creation and creating knock-on demand for IP support
services.
7.2.2. Singapore already enjoys a compelling set of attributes of being a trusted, neutral
node and a vibrant city with strong IP protection regime. Singapore is home to
more than 37,000 international companies, and over 60% of the MNCs have their
global or regional headquarters here, together with senior “C-suite” management,
as well as key corporate functions like strategic business planning and R&D.
7.2.3. Singapore should leverage this high concentration of MNCs to develop itself as the
hub for companies to aggregate their regional, or even global, supply of and
demand for IP rights. The C-suite executives, especially executives like the Chief IP
Officers, Chief Technology Officers, and Chief Legal Officers, support and drive the
development and implementation of IP-related product / market strategies.
Consequently, we should attract and reach out to these professionals to do more
out of Singapore. This will also maximise the synergies between the IP, technology,
business and legal aspects of the companies in a holistic fashion, given the
strengths of these supporting industries in Singapore. If we can harness this
opportunity, Singapore can be one of the key locations in Asia for both the sale and
procurement of IP assets, licenses and franchises.
7.2.4. With globalisation, companies are constantly looking at how they can structure
their IP business functions across various jurisdictions to best support their
international operations and gain maximum strategic advantage, with the tax
environment often being one of the major considerations. In recent years, several
countries have implemented various tax measures to encourage, attract and
anchor downstream IP activities. A number of countries, mainly in Europe, have
enacted the IP Box regime which provides for a reduced effective tax rate on
qualifying income from IP, including patents, trademarks and copyrights. They
include France (2001), China (2005), Belgium (2007), Netherlands (2008), and the
UK (2013). As companies become more mobile, we need to make our IP-related
tax system a more competitive one.
7.2.5. Singapore has likewise introduced several IP-specific tax measures to promote IP
transaction and management activities, thereby attracting foreign investments:
Automatic writing down allowance for acquisition of IP;
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Unilateral tax credit for royalty income to offset withholding tax liabilities
with countries without a double tax agreement with Singapore;
Lower withholding tax on royalty payments;
EDB’s Development and Expansion Incentive (DEI) scheme that provides
concessionary tax rates on qualifying IP income for substantive activities in
Singapore.
7.2.6. Singapore also has an extensive Double Taxation Agreement (DTA) network with
our major trade partners, which reduces withholding tax on royalties. Nonetheless,
in the face of increased global competition as countries start to expand their DTA
networks, Singapore should study whether our current tax regime remains
attractive to technology, franchising and licensing companies, and whether more
enhancements are required to strengthen our position as a choice destination from
which to transact, manage and commercialise IP.
Recommendation 6-1
Implement an IP Box or similar tax regime to provide greater transparency and
certainty in Singapore’s IP tax regime.
7.2.7. The Committee recommends that the Government adopt an IP Box or equivalent
tax regime, even for IP not created in Singapore. The Committee notes that EDB’s
DEI scheme also incentivises IP-related income such as licensing revenue and
trading gains, and has been successful in attracting MNCs to manage their IP
portfolios from Singapore. However, this can be enhanced with a broad-based
scheme like the IP Box which confers greater transparency and certainty on the tax
incentives. It also sends a strong signal of the Government’s commitment to
develop Singapore into a Global IP Hub in Asia and grows Singapore’s global IP
reputation. To enjoy the tax benefits of the IP Box, IP owners must have
substantive management and decision-making functions anchored here.
7.3. A PROGRESSIVE IP ENVIRONMENT THAT PROMOTES ADVANCED IP THINKING
7.3.1. We must aim to build an environment that reflects a progressive and forward
looking approach in all aspects of the IP discipline. Singapore should seek to be the
hotbed where innovative IP business models and services, or innovations
themselves, especially those targeting the Asian market, are tested and launched.
With its global and regional interconnectedness, Singapore should seek to be the
Asian nexus for discourse and research on the latest global and regional IP trends
and developments, and how IP regimes, businesses and services should adapt and
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evolve. Embracing a progressive outlook would make for a vibrant and exciting IP
environment that is at the forefront of latest developments, and allow Singapore to
continually engage the IP community. Such an environment would attract a wide
variety of IP activities onshore, and equally importantly, enhance Singapore’s
international visibility and reputation as an IP Hub.
A. IP Conferences
7.3.2. Conferences provide an ideal platform for interaction between key thinkers and
stakeholders, allowing for greater sharing of knowledge and enrichment of IP
thinking in Singapore. Conferences also add to the perception-building of
Singapore as an advanced, forward looking hub for IP activities and developments.
It further allows various international IP stakeholders to gain an appreciation of the
environment in Singapore, and network with and build linkages with Singapore-
based IP industry players.
7.3.3. Singapore had previously organised the WIPO Diplomatic Conference for the
Adoption of a Revised Trademark Law Treaty, which culminated in the adoption of
the Singapore Treaty on the Law of Trademarks. In addition, Singapore has been
actively organising IP events such as the biennial Global Forum on Intellectual
Property (GFIP) and the inaugural IPWeek@SG which includes the Intellectual
Property Management for C-Suite Seminar (IPMCS), the Europe-Asia Patent and
Patent Information Conference (EAP2IC), and the ASEAN Working Group on
Intellectual Property Cooperation (AWGIPC).
Recommendation 7-1
Establish flagship IP and innovation-related conferences and host international IP
conferences in Singapore, to advance and enrich IP discourse in Asia.
7.3.4. Singapore should develop its own flagship event by organising an annual world-
class IP conference that advances regional or international interest in IP. Such a
flagship event could also be an ideal avenue for Singapore’s IP Judges to assert
thought leadership on IP jurisprudence, and for the international advisory panel
(see paragraphs 7.3.7 – 7.3.8) to share their insights. The event could be
accomplished by building on the foundation of the GFIP, and benchmarked against
existing top-notch events such as the World Cities Summit and Singapore
International Water Week.
7.3.5. The development of IP thinking can also be directed further upstream, in terms of
innovation and the creation of IP itself. Singapore could organise a world-class
innovation and invention conference, similar to the biennial Euroscience Open
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Forum, an interdisciplinary, pan-European event which showcases recent
advancements in science and technology. Such a conference would strengthen
perceptions of Singapore as a location for innovation and inventions, which is a key
pillar of our knowledge-based economy and our distinctive strength compared to
other IP hubs.
7.3.6. In addition to Singapore-organised conferences, the Government should also
attract existing major global IP conferences to be hosted in Singapore, with leading
international IP experts as speakers, to draw a wider international audience to its
shores.
B. International Advisory Panel
7.3.7. Developing Singapore as an IP Hub will be an ongoing and dynamic process since
the IP landscape is likely to continue developing and shifting rapidly, especially
within the region. There would be a need for the constant re-examination and re-
calibration of strategy and priorities in response to global developments. This
needs to be guided by industry perspectives and insights, given the highly
specialised and often confidential nature of IP transactions and activities.
Recommendation 7-2
Convene an international advisory panel to guide the development of Singapore as
a Global IP Hub in Asia.
7.3.8. The Committee recommends for an international advisory panel to be convened to
advise and guide Singapore’s development as an IP Hub. Panel members should
comprise eminent individuals worldwide from a range of backgrounds pertinent to
IP. Being able to aggregate this wealth of experience and knowledge would not
only benefit Singapore’s development as an IP Hub, but also generate invaluable
insights that can influence the global IP landscape.
C. IP Research
7.3.9. Beyond being a venue to facilitate international IP discourse, Singapore must also
participate more actively and contribute to advancement of the body of IP
knowledge and thought leadership.
Recommendation 7-3
Encourage more Asia-centric, multi-disciplinary IP research in Singapore.
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7.3.10. In particular, Singapore should look towards progressively building up a substantial
body of Singapore-originated IP knowledge. With Singapore’s geographical
proximity to key IP markets in Asia, our IP research should adopt an Asia-centric
perspective to contribute to the existing body of IP jurisprudence. It should be
multi-disciplinary and evidence-based, focusing on topics useful to industry and
policy makers. Research grants and incentives can be given for researchers to
embark on research topics such as the interoperability of Asian IP regimes and the
development of IP jurisprudence in Asia. In addition to academics, we would do
well to also involve industry players, economists, practitioners and stakeholders in
IP research, so as to infuse a stronger practice-based element in our research
output that is reflective of our stakeholders’ experience in providing IP services and
dealing with IP in Asia.
7.3.11. The Committee has observed that current research publications tend to be US and
Europe-centric. Feedback was received that it is more difficult for IP research
originating from Asia, particularly those focused on IP in an Asian context, to be
published in these journals. Given the significant growth and development of the
IP landscape in Asia, it would be worthwhile to support an Asia-centric IP
publication which showcases research from the region and gives a stronger voice to
Asian IP research.
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CHAPTER 8
CONCLUSION
8.1. The global IP landscape is at an inflexion point in its development, and the next
decade will be an important one for the IP industry. There will be tremendous
growth across the IP value chain, and a continued proliferation of new ways of
exploiting and monetising IP.
8.2. The development of the IP Hub Master Plan is but the start of a journey. It will not
be possible to project the future directions of the IP landscape, and indeed there
are uncertainties. How the rise in IP litigation would impact innovation and policy;
the sustained growth and development of China’s IP industry; the geopolitics within
Asia Pacific and how that would affect corporate strategy, etc. – all of these will
mould and transform the global IP landscape in the years ahead.
8.3. Nonetheless, some broad mega trends are clear. As the global economy transits to
becoming a more knowledge-based one, IP will occupy an increasingly pivotal
position as a driver of business performance and economic growth. The new
battleground for economic prowess will go beyond the mere creation of ideas and
knowledge, and hinge on the harnessing and exploitation of such intellectual
capital to the fullest. Considering the rise of Asia, the future growth story in IP will
progressively shift towards the East. It is also evident that IP transactions will
become even more transnational. Asia will need a trusted location to do business,
protect its IP assets, and support its needs in IP services – Singapore can play this
role well.
8.4. Singapore should be open to and proactively seek new possibilities, and be bold in
our approach to seize the next wave of opportunities in Asia and beyond. We have
always been able to leverage our strengths and serve as a key node to support
global flows with great success – be it in terms of goods, people or capital. We
already have a strong foundation to evolve a vibrant IP ecosystem that we could
build on to capture the flow of ideas. If we can continue to be forward looking and
act nimbly, we can ride on the growth of IP in the years to come, and stay relevant
and interconnected, as a pre-eminent Global IP Hub in Asia.
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ANNEX A: IP STEERING COMMITTEE MEMBERS
S/N
Name Designation
Chairman: 1. Mr TEO Ming Kian Chairman, MediaCorp Pte Ltd Members (in alphabetical order): Co-Chairs of Sub-Committee 1: 2. Mr Magnus BOCKER
Chief Executive Officer, Singapore Exchange
3. Mr Viktor CHENG
Deputy Chief Executive (Infrastructure and Capability Development Group / Corporate Services Group), Intellectual Property Office of Singapore
Co-Chairs of Sub-Committee 2: 4. Dr Stanley LAI, SC
Head of Intellectual Property Practice, Allen & Gledhill LLP
5. Ms Danielle YEOW
Senior State Counsel, International Affairs Division, Attorney-General’s Chambers (wef 1 Jul 2012); Deputy Chief Executive (Registries Group / Legal Policy & International Affairs Department), Intellectual Property Office of Singapore (till 30 Jun 2012)
Other members: 6. Mr FONG Saik Hay Chief Technology Officer, Singapore Technologies
Engineering Ltd; President, ST Dynamics Pte Ltd
7. Mr KEOY Soo Earn Partner - Head of M&A Transaction Services and Valuation Services, Singapore and Southeast Asia, Deloitte & Touche LLP
8. Prof LOW Teck Seng (replaced Dr Francis YEOH wef 20 Jul 2012)
Chief Executive Officer, National Research Foundation
9. Mr LU Yoh Chie Chairman, Biosensors International Group Ltd
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S/N
Name Designation
10. Mr Suresh SACHI (replaced Prof LOW Teck Seng wef 20 Jul 2012)
Deputy Managing Director & General Counsel, Agency for Science, Technology and Research
11. Mr TAN Yih San Chief Executive, Intellectual Property Office of Singapore
12. Mr Eric THAM
Managing Director and Head, Group Commercial Banking, United Overseas Bank Ltd
13. Ms Valerie THEAN (replaced Mr Hugh LIM wef 1 Nov 2012)
Deputy Secretary, Ministry of Law
14. Prof TSUI Kai Chong
Provost, SIM University
15. Mr YEOH Keat Chuan (replaced Dr BEH Swan Gin wef 1 Jul 2012)
Managing Director, Economic Development Board
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ANNEX B: IP SUB-COMMITTEE MEMBERS
B.1. IP Sub-Committee 1 on “Developing a vibrant marketplace for IP transaction and commercialisation”
S/N
Name Designation
Co-Chairs: 1. Mr Magnus BOCKER
Chief Executive Officer, Singapore Exchange
2. Mr Viktor CHENG
Deputy Chief Executive (Infrastructure and Capability Development Group / Corporate Services Group), Intellectual Property Office of Singapore
Members (in alphabetical order): 3. Ms CHEW Mok Lee Assistant Chief Executive, Entrepreneurship &
Innovation, SPRING Singapore
4. Mr Jayson GOH Executive Director, Infocomms & Media, Economic Development Board
5. Mr Linus GOH Executive Vice President, Head of Global Commercial Banking, OCBC Bank
6. Dr LIM Khiang Wee Executive Director, IPI
7. Mr Philip LIM Chief Executive Officer, Exploit Technologies Pte Ltd
8. Mr NG Nam Sin Assistant Managing Director, Development Group, Monetary Authority of Singapore
9. Mr Guy PROULX Managing Director, Transpacific IP
10. Mr Terence SEOW Assistant Chief Executive Officer, International Enterprise (IE) Singapore
11. Mr Brett SHADBOLT Chief Executive Officer, Censere Group
12. Mr Eric THAM Managing Director and Head, Group Commercial Banking, United Overseas Bank Ltd
13. Prof WONG Poh Kam Director, NUS Entrepreneurship Centre, NUS Enterprise, National University of Singapore
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S/N
Name Designation
14. Dr WONG Woei Fuh Managing Director, IP & Science, Rest of Asia Pacific, Thomson Reuters
15. Ms Audrey YAP Managing Partner, Yusarn Audrey
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B.2. IP Sub-Committee 2 on “Building world-class IP capabilities and infrastructure”
S/N
Name Designation
Co-Chairs: 1. Dr Stanley LAI, SC
Head of Intellectual Property Practice, Allen & Gledhill LLP
2. Ms Danielle YEOW
Senior State Counsel, International Affairs Division, Attorney-General’s Chambers (wef 1 Jul 2012); Deputy Chief Executive (Registries Group / Legal Policy & International Affairs Department), Intellectual Property Office of Singapore (till 30 Jun 2012)
Members (in alphabetical order): 3. Prof Casey CHAN Partner, VentureMD
4. Dr Lily CHAN Chief Executive Officer, NUS Enterprise, National
University of Singapore
5. Ms CHIAM Lu Lin Deputy Chief Executive (Hearings & Mediation Group / Capacity Building Group), Intellectual Property Office of Singapore
6. Prof HANG Chang Chieh Head, Division of Engineering & Technology Management, Faculty of Engineering, National University of Singapore
7. Prof David LLEWELYN Professor of Law (Practice), School of Law, Singapore Management University
8. Mr Daniel POH Partner, Marks & Clerk Singapore LLP
9. Mr Suresh SACHI Deputy Managing Director & General Counsel, Agency for Science, Technology and Research (wef 20 Jul 2012); General Counsel, Agency for Science, Technology and Research (till 19 Jul 2012)
10. Prof Anilkumar SAMTANI Associate Professor of Law, Nanyang Business School, Nanyang Technological University
11. Ms Jo-Ann SEE Director, Amica Law LLC
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S/N
Name Designation
12. Mr Sivananthan SIVAGNANARATNAM
Vice President, Legal Services, Creative Technology Ltd
13. Mr Kevin THESEIRA Managing Counsel, Agilent Technologies Singapore Holdings Pte Ltd
14. Dr Richard WOODLING Director, Global R&D Center, Siemens Pte Ltd
15. Mr Kelvin WONG Executive Director, Logistics, Professional Services and International Organisations Programme Office, Economic Development Board
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ANNEX C: TERMS OF REFERENCE
Committee Terms of Reference
IP Steering Committee To oversee the development of a Master Plan that will develop
Singapore as an Asian IP Hub, well-supported by a
comprehensive suite of world-class IP services and served by an
efficient and modern IP infrastructure.
Sub-Committee 1 on
“Developing a vibrant
marketplace for IP
transaction and
commercialisation”
To recommend strategies to:
Build a vibrant marketplace in Asia for the transaction and
commercialisation of IP.
Facilitate and encourage greater IP exploitation by
companies.
Sub-Committee 2 on
“Building world-class IP
capabilities and
infrastructure”
To recommend strategies to:
Expand and deepen the expertise of our IP professionals
and practitioners in strategic areas of the IP services sector.
Enhance Singapore’s IP infrastructure, including dispute
resolution capabilities, to facilitate the protection and
registration of IP in global markets.
Promote excellence in IP research and thought leadership.